Layoff announcements jumped 193% in August after months of steady decline, according to a new report from Challenger, Gray & Christmas. Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc., has joined his Wealth. We’re here to discuss the current state of the labor market and what that means for the Federal Reserve’s future path to lower interest rates.
Challenger noted that August’s layoff announcements were primarily in the technology industry, which is cutting jobs at a higher rate than other industries. The education, government, health and leisure and entertainment sectors saw a resurgence of job cuts, which he called “concerning” as these sectors have largely shown resilience.
Challenger is concerned about manufacturing layoffs, which have skyrocketed by more than 200% starting in 2023. “Manufacturing in particular is an area that has been very resilient over the past few years, but the fact that we are seeing some losses there is a sign that we may indeed be nearing a tipping point. “As the Fed tries to balance combating inflation with rising unemployment, it will carefully consider its next decision,” he explains.
For more expert insights and the latest market trends, click here to watch the full episode of Wealth.
This post was written by Melanie Leal
