The Job Market Got Even More Stagnant In December | Global News Avenue

Last year, employers announced the fewest hiring plans since 2015 as the job market remained mired in low hiring, low firings, and low turnover.

Consulting firm Challenger, Gray & Christmas said in its monthly job market report on Thursday that U.S. employers announced 769,953 hiring plans for 2024, a 1.3% decrease from 2023 and a nine-year low. Companies have also stepped up layoffs, announcing 761,358 layoffs in 2024, an increase of 5.5% from the previous year, the most since 2020.

Employers are not hiring and firing; The workers did not resign

These data add to the job market picture remain relatively stableif stagnant, in recent months. Most employers employ only a handful of workers but resist large-scale layoffs. Several economists said uncertainty about the economic trajectory under incoming President Donald Trump could keep more employers on the sidelines.

“Economic uncertainty appears to be keeping many employers on the sidelines, so some are still keeping job postings open for suitable candidates who might apply, but they are being more selective than in previous years when they were desperate for talent. Economist at Moody’s Analytics Justin Begley wrote in the comments.

The job market is no longer as hot as it was after the pandemic, when workers were in high demand. However, recent official employment data shows lower levels of hiring, firings and resignations compared with pre-pandemic levels.

Although the Challenger report showed an increase in layoffs, Begley said the rise in layoffs does not necessarily mean the job market is in a precipitous decline, noting that layoffs are concentrated in just four industries: technology, retail, health care/products and financial services .

A survey by the U.S. Bureau of Labor Statistics (BLS) showed that the number of layoffs in November was close to an all-time low.

The Challenger report serves as an indicator of expectations for Thursday’s U.S. Bureau of Labor Statistics employment report for December. Economists consider BLS reports the “gold standard” of labor market data, which tend to have a greater impact on financial markets than reports from private companies such as Challenger and ADP.