American employers announced less layoffs in September, but the hiring plans so far this year were the lowest since 2009, a report said Thursday, which adds to the evidence of a stagnation of the labor market as the demand and the supply of workers fall due to political and technological advances.
The Global Challenger, Gray & Christmas Global Firm’s report normally does not attract much attention. But together with other private data, it has become more prominent due to a closure of the United States government that has led to the suspension of important economic publications, including the September Employment Report that will be published on Friday.
The 15th closing of the Government since 1981, which will lead to the license of 750,000 federal workers, has also delayed the publication of the weekly report of unemployment applications, August factory orders and construction data. It is also likely that the commercial report is affected.
Challenger, Gray & Christmas said that planned job cuts fell 37% intermencing to 54,064 in September. So far this year, employers have announced 946,426 job cuts, the highest year to date from 2020.
The hiring plans so far this year have totaled 204,939, the lowest year to date since 2009, when the economy was just left the great recession.
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“At this time, we are dealing with a stagnant labor market, cost increases and a new transformative technology,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas. “With the cuts of rates on the way, we may see some stabilization in the fourth quarter, but other factors could make employers plan dismissals or postpone hiring.”
The Federal Reserve resumed the flexibility policy last month, cutting its reference interest rate to one day at 25 basic points to the range of 4%-4.25%, to help the labor market.
Economists say that the persistent uncertainty of the commercial policy of President Donald Trump, the immigration raids and the increase in artificial intelligence have combined to reduce demand and the supply of labor. Non -agricultural payrolls averaged only 29,000 jobs per month in the three months until August, compared to 82,000 during the same period last year.
Challenger said the Government represented most of the planned layoffs, with 299,755 job cuts announced so far this year, part of an unprecedented campaign of the White House to reduce the Federal Work Force. Trump threatened to fire more federal workers if there was a closure.
The increase in AI is costing jobs in the technological sector, and industry companies announced 107,878 layoffs so far this year. Challenger said the AI was also making it difficult to obtain positions, particularly for entry level engineers.
If the closure persists until next week, consumer price reports, retail sales, housing and inflation construction to the September producer will probably not be published, which will affect the decision making of households, investors and political leaders.
With Reuters information.
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