March 2024 Sees Highest Job Losses in U.S. with Technology Sector Leading Cuts

Key Takeaways

• In March, U.S.-based employers cut 90,309 jobs, the highest of any month since January 2023, with a significant portion coming from federal government positions.
• Government employees were the largest single job-cutter in March, with a total of 36,044 jobs lost, making it the highest single-month job losses since September 2011.
• The technology sector led the quarter in job cuts with 42,442, followed by the government and financial firms, with the majority of job losses due to cost-cutting and restructuring.
• Despite the record single-month job loss in March, overall job cuts are down from last year, with 257,254 jobs eliminated in the first quarter of 2024, compared to 270,416 by the same time in 2023.
• More jobs have been cut in the eastern region of the U.S. than in any other region, with over 94,000 job cuts so far this year.

News Content

In March, over 90,000 jobs were eliminated by U.S.-based employers, the highest number since January 2023. A report by Challenger, Gray & Christmas attributes this trend to a "do more with less approach" adopted by companies. More than a third of the cuts were from federal government positions, with the government becoming the largest single job-cutter in March. Overall, the first quarter of 2024 saw a total of 257,254 job eliminations, with the technology sector leading in cuts. Despite the high number of March job losses, total cuts are lower than last year.

The technology sector accounted for the highest number of job eliminations in the first quarter of 2024, followed by the government and financial firms. The report highlighted that a majority of job losses were due to cost-cutting measures, followed by restructuring and closures of units and stores. Notably, the eastern region of the U.S. experienced the highest number of job cuts this year, surpassing other regions. While the unemployment rate has been consistently low, job losses in several industries, including energy and industrial manufacturing, have increased.

Despite the recent job cuts, American unemployment has been below 4% for 25 consecutive months. However, there was a slight increase in the unemployment rate in February. Economists are expecting a slight dip in the rate with the release of the Bureau of Labor Statistics' monthly jobs report. These developments signify a significant shift in job market dynamics and economic conditions in various sectors.

Analysis

In March, the surge in U.S. job eliminations can be linked to companies' cost-cutting strategies amid economic uncertainties. The "do more with less approach" reflects the need for efficiency and profitability. In the short term, this trend may lead to heightened financial strain for affected individuals and reduced consumer spending. However, in the long term, the restructuring and technology sector cuts could spur innovation and agility. The dominance of the eastern region in job cuts suggests regional economic challenges. The incremental unemployment rate hints at a potential labor market shift. This scenario calls for vigilant monitoring of the evolving job market dynamics and economic resilience.

Do You Know?

• Job Eliminations: In March 2024, over 90,000 jobs were eliminated by U.S.-based employers, the highest number since January 2023. This trend is attributed to a "do more with less approach" adopted by companies, with the technology sector leading in cuts. The first quarter of 2024 saw a total of 257,254 job eliminations, with the government becoming the largest single job-cutter in March.

• Unemployment Rate: Despite the recent job cuts, the American unemployment rate has been below 4% for 25 consecutive months. However, there was a slight increase in the unemployment rate in February. Economists are expecting a slight dip in the rate with the release of the Bureau of Labor Statistics' monthly jobs report. These developments signify a significant shift in job market dynamics and economic conditions in various sectors.

• Industry Impact: Job losses in several industries, including energy and industrial manufacturing, have increased. The technology sector accounted for the highest number of job eliminations in the first quarter of 2024, followed by the government and financial firms. Majority of job losses were due to cost-cutting measures, restructuring, and closures of units and stores. Notably, the eastern region of the U.S. experienced the highest number of job cuts this year, surpassing other regions.