The employers announced the layoffs given the prospect of difficult economic times ahead.
US tech companies dominated the number of job cuts announced in 2022 as some employers downsized to prepare for tough economic times ahead.
Job cuts at US technology companies registered 97,171 in all of 2022, an increase of 649% compared to 2021, according to the report on job cuts from Challenger, Gray & Christmas, Inc.
This industry had the largest job losses as it has faced increasing challenges.
Employers across all industries in the United States announced the termination of nearly 363,824 jobs in 2022, more than the 322,000 positions eliminated in 2021.
American employers announced the layoff of 43,651 jobs in the technology sector in the last month of 2022, which represented 43% less than the number of cuts announced in November.
employmentThe automotive industry had the second largest number of cuts with 30,912 jobs lost, 195% more than the 10,469 in 2021. The health sector was the third with 30,626 layoffs compared to 31,997 the previous year.
recession risk
With interest rates rising, there is widespread fear that the Federal Reserve will drive the US economy into a recession.
The overall economy continues to create jobs, although employers appear to be actively planning for a recession. Hiring has slowed as companies take a cautious approach heading into 2023,” said Andrew Challenger, a senior vice president at the employment firm.
The US government is scheduled to report December hiring levels today.
Amazon and Salesforce
Challenger’s comments coincided with the announcement by Amazon Chief Executive Andy Jassy, who on Thursday confirmed speculation that the e-commerce retailer would cut more than 18,000 jobs this year. For its part, on Wednesday, Salesforce Inc. said it planned to cut its workforce by 10%, citing the slowing economy.
Private payrolls in the US exceed expectations: ADP
Private payrolls in the United States (US) rose more than expected in December, pointing to still strong labor demand despite higher interest rates.
Private employment increased by 235,000 jobs last month, the ADP National Employment Report showed on Thursday. Economists polled by Reuters had forecast an increase of 150,000 private jobs.
“The labor market is strong but fragmented, with hiring that varies considerably by industry and the size of the establishment. Business segments that hired aggressively in the first half of 2022 have slowed hiring and, in some cases, cut jobs in the last month of the year,” said Nela Richardson, chief economist at ADP.
The ADP report, developed in conjunction with Stanford’s Digital Economy Lab, was released ahead of December’s most comprehensive and closely watched employment report from the Labor Department’s Bureau of Labor Statistics. According to a Reuters poll, private payrolls likely increased by 180,000 jobs in December.
