Washington,23 Jan 2024:Disturbing trends have emerged in the American job market, with a notable increase in layoffs recorded in 2023. According to a prominent report, US companies announced staggering layoffs affecting approximately 7,21,677 employees last year. This figure reflects a stark 98 percent surge compared to the 3,63,832 layoffs reported in 2022.
The 'Challenger, Gray and Christmas' report highlights that the tech sector, including industry giants like Meta and Amazon, bore the brunt of the layoffs, with around 1,68,032 people being affected. This marks a significant 73 percent increase from the previous year. The report suggests that the challenging employment scenario is poised to persist into the current year, as companies entered 2024 with a focus on cost containment, potentially leading to more job cuts.
Anticipating a slowdown in new appointments, the report underscores the impact of factors such as artificial intelligence (AI), mergers and acquisitions, and resource streamlining on job cuts in the tech sector. Companies in the retail sector reported layoffs of 78,840 employees in 2023, reflecting a staggering 274 percent annual increase. Layoffs in healthcare product manufacturing, including hospitals, rose by 91 percent, affecting 58,560 individuals.
The 'Challenger, Gray and Christmas' report attributes the rise in layoffs to economic system uncertainties in the US, coupled with store closings, business bankruptcies, and the growing influence of artificial intelligence (AI). In a disheartening trend, the report also reveals that in 2023, 34 percent of employers opted not to provide bonuses to their employees, adding an additional layer of challenges to the workforce. As the job market navigates through these turbulent times, attention will be closely focused on how companies adapt to the evolving economic landscape in the coming months.
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