In March 2024, government job cuts in the United States reached their highest level since September 2011, with layoffs affecting the U.S. Army and the Veterans Affairs offices in addition to job losses across various industries. Data from job search firm Challenger, Gray & Christmas, Inc. revealed that government agencies cut over 36,000 jobs in March, with Veterans Affairs cutting 10,000 roles and the Army cutting 24,000 positions. Overall, more than 90,000 jobs were eliminated last month, a 7 percent increase from February. Employers in the first quarter of 2024 planned to slash over 257,000 jobs, which was 5 percent less than the same period last year but significantly higher than the end of 2023.
According to workplace and labor expert Andy Challenger, companies reducing jobs cite cost-cutting as the primary reason for slashing positions. Technology firms have cut more than 42,000 positions since the beginning of the year, indicating a recalibration following the hiring spree seen during the COVID pandemic. Despite this, job cuts in the tech sector in 2024 were 59 percent lower compared to the same period in 2023. In March alone, tech businesses cut over 14,000 jobs. Financial firms also reduced headcount in the first quarter, cutting close to 29,000 jobs, but this was still lower than the previous year. Some companies are looking to hire at a slower pace, with employers planning to add nearly 37,000 jobs in the first quarter, a 48 percent decrease from the same period in 2023.
The data on job cuts and hiring trends comes at a time when workers seem to be in a strong position, with millions of job opportunities available for American workers. Private employers hired 184,000 new workers in March, with the services sector leading the way by adding 142,000 roles. Additionally, employees switching jobs were receiving higher wages, indicating a robust labor market for workers. ADP Research Institute’s chief economist, Nela Richardson, highlighted the strong job growth and pay growth for job changers, along with positive sentiment indicators, suggesting a solid or even excellent job market for 2024. Newsweek is committed to challenging conventional wisdom and seeking connections in the quest for common ground.
Overall, while job cuts in various industries, particularly in the government sector, have increased in March 2024 compared to previous months and years, the labor market for workers in the United States appears to be strong. Companies are looking to cut costs through reducing headcount, with technology and financial firms leading the way in job cuts. However, there are still job opportunities available for workers, with millions of openings across different sectors. Private employers are hiring new workers, with the services sector showing significant job growth. Employees switching jobs are experiencing higher wages, indicating a positive labor market for workers in 2024. Newsweek is dedicated to challenging norms and exploring connections in the pursuit of shared understanding.
