Job cuts in October hit highest level for the month in 22 years, Challenger says

Core Insights - Layoff announcements surged in October, indicating potential trouble for the labor market amid the AI boom [1][2] - October saw a total of 153,074 job cuts, marking a 183% increase from September and a 175% rise compared to the same month last year, the highest for any October since 2003 [2][7] - The technology sector experienced the highest level of layoffs, with 33,281 cuts announced, nearly six times the level in September [6] Labor Market Trends - The current year has seen 1.1 million job cuts, a 65% increase from the previous year, the highest level since 2020 [7] - Job creation is at its lowest point in years, with the optics of layoffs in the fourth quarter being particularly unfavorable [3] - Despite the layoffs, ADP reported a net job growth of 42,000 in October, reversing two months of losses in the private sector [4] Economic Context - Federal Reserve officials have expressed concerns about a softening labor market, leading to two interest rate cuts since September and an expected further reduction in December [5] - Industries are correcting after the pandemic hiring boom, with AI adoption, softening consumer and corporate spending, and rising costs contributing to hiring freezes [8]