US job cuts fall back in December but nearly double for all of 2023

An employee hiring sign with a QR code is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023. REUTERS/Elizabeth Frantz/File photo

NEW YORK  – U.S. employers slowed layoffs in December, with the fewest announced job cuts since July, although the total for all of 2023 was the highest since 2020 when the COVID-19 pandemic emerged, a report out Thursday showed.

Announced job cuts totaled 34,817 in December, down 24 percent from 45,510 in November, according to data released by outplacement firm Challenger, Gray & Christmas. Announced layoffs fell 20 percent from December 2022.

For the year, though, announced layoffs roughly doubled from 2022 to more than 720,000. That was the highest since 2020 when over 2 million job cuts were reported, the report said.

READ: US job openings fell slightly in November

“Layoffs have begun to level off, and hiring has remained steady as we end 2023,” said Andy Challenger, workplace and labor expert and Senior Vice President of Challenger, Gray & Christmas Inc.

“That said, labor costs are high. Employers are still extremely cautious and in cost-cutting mode heading into 2024, so the hiring process will likely slow for many job seekers and cuts will continue in Q1, though at a slower pace,” Challenger said.

READ:US economic data point to ‘real momentum’ for 2024, White House says

The technology and retail industries announced the most job cuts in 2023, with employers most frequently citing economic uncertainty and the closure of businesses, units or stores as reasons for layoffs. Employers in the technology industry announced 168,032 job cuts on an annual basis, just shy of the sector’s record of 168,395 set in 2001.