US hiring and firing declined in September: Challenger
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The news: US employers scaled back plans for hiring in September and announced fewer job cuts, according to data from firm Challenger, Gray & Christmas.
The numbers: In September US firms announced plans to add 117,313 jobs, down 71% from the year prior, marking the weakest September for hiring plans since 2011.
The Challenger report released Thursday showed a significant slowdown in seasonal hiring plans compared to previous years.
US-based employers announced plans to add nearly 205,000 jobs from January to September, the weakest year-to-date period since 2009.
Meanwhile, firms in September announced a planned 54,064 job cuts, an almost 26% decline from one year ago and fewer than the 85,979 announced in August. Planned cuts don’t necessarily translate into immediate layoffs.
The context: While the Challenger report form the global outplacement firm does not typically attract much attention, alongside other private data the report is becoming more significant as the US government shutdown has lead to the suspension of major economic releases.
The closely watched employment report for September was due on Friday.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas said: "With rate cuts on the way, we may see some stabilizing in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring."
Challenger said the US government accounted for most planned layoffs, with 299,755 job cuts announced so far this year, part of a White House campaign to reduce the federal workforce. Trump threatened to fire more federal workers if there was a shutdown.
The source: Challenger, Gray & Christmas
