Layoffs rise as US hiring drops to decade low in 2024

U.S.-based employers announced plans to hire 769,953 workers in 2024, marking the lowest annual level since 2015, according to a report released by consulting firm Challenger, Gray & Christmas.

The firm’s December report, which tracks announced layoffs and hiring plans, revealed that layoffs rose significantly in 2024. Employers announced 38,792 job cuts in December, an 11% increase compared to the same month in 2023. Layoffs in the final quarter of 2024 reached 152,116, a 30% year-on-year increase.

For the entire year, layoffs climbed 5.5% compared to 2023, totaling 761,358—the highest level recorded since 2020.

The technology sector, however, saw a decline in announced layoffs. Job cuts in the sector dropped 20.3% from the previous year, with 133,988 positions eliminated in 2024.

Meanwhile, hiring announcements also showed a downward trend. Employers disclosed plans to hire 7,999 workers in December 2024. For the year as a whole, hiring plans declined 1.3%, settling at 769,953—the lowest annual figure since 2015.

Andrew Challenger, senior vice president at Challenger, Gray & Christmas, noted that 2024 was a year of extraordinary change for companies amid rapid technological advancements and shifting economic conditions.

“Most employers anticipate greater uncertainty with the incoming administration in the United States,” Challenger said. “This has led to slower hiring across several sectors and an increase in layoffs in the short term.”

He further added, “The slowdown in hiring reflects ongoing economic uncertainty and cautious approaches by employers toward expansion.”

The report highlights the challenges faced by businesses as they navigate an evolving economic landscape, with job cuts rising and hiring falling to levels not seen in nearly a decade.