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US Companies Announced Fewest Hires in 2024 in Nearly a Decade

U.S. job growth reached a 3.5 year-low as companies order hiring freezes and competition increases. Strategist Gennadiy Goldberg explains.

(Bloomberg) -- US companies pared back hiring plans in 2024 as employers announced the smallest additions to headcount in almost a decade, according to figures published Thursday. 

Monthly data from Challenger, Gray & Christmas showed firms announced plans to hire 769,953 workers last year, the least since 2015. Job cuts also picked up, with employers planning to eliminate 761,358 positions — a 5.5% increase from 2023.

Thursday’s report builds on recent data showing moderating labor demand as businesses remain cautious ahead of January’s changeover in the White House.

“The slower hiring pace reflects ongoing uncertainty in economic conditions and cautious approaches by employers to expansion,” said Andrew Challenger, senior vice president of the executive coaching firm behind the report. “While certain sectors are accelerating recruitment, others remain hesitant due to market volatility and the impact of the new administration.”

The reductions in headcount last year were led by technology companies, which announced close to 134,000 job cuts. Still, that figure represented 20.3% fewer layoffs in the sector than in 2023.

Health care followed with 51,600 cuts, and the automotive sector registered about 48,200 layoff announcements amid a transition toward electric vehicles and ongoing supply chain disruptions, according to the report.

“Market/economic conditions” were the most-cited reason for job cuts in 2024, affecting about 150,000 positions. “Cost-cutting” came next, accounting for more than 148,000 cuts.

“Companies underwent extraordinary change in 2024 due to rapid technological advancement and shifting economic conditions,” Challenger said. “Most employers are anticipating additional uncertainty with the upcoming administration, which is leading to slower hiring and more layoffs in the short term from various sectors.”

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