U.S. companies' recruitment plans for August hit the lowest level in history for the same period, while layoff plans soared

Data from a US re-employment consulting firm shows that due to broader economic uncertainties, US companies' recruitment plans for August dropped to the lowest level on record for the same period, while the number of planned layoffs increased significantly.

Challenger, Gray & Christmas, an employment information company, reported on Thursday (September 4) that U.S. companies announced plans to add 1,494 jobs in August, the lowest number for the same period since statistics began in 2009. Among the 30 industries tracked by Challenger, recruitment plans are concentrated in aerospace and defense, industrial products and retail.

The total number of announced layoff plans soared to nearly 85,980 year-on-year, setting a new record for August since 2020. Excluding the impact of the epidemic, this figure is the highest in August since the Great Recession of 2008.

Bloomberg pointed out that Thursday's report further confirmed the view that the labor market is slowing down, as many companies have curbed their expansion plans before the economic outlook becomes clearer. Recruitment activities in the United States have cooled down in recent months. It is expected that the government report to be released on Friday (the 5th) will show that this trend will continue into August.