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Layoffs Reach Lowest August Tally Since 2022, Challenger Report Shows

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Layoffs Reach Lowest August Tally Since 2022, Challenger Report Shows

US job cut announcements in August hit the lowest total for the month in four years, Challenger, Gray & Christmas said Thursday, ahead of the official jobs report due Friday.

Employers announced 52,881 layoffs last month, down 38% from a year earlier and representing the lowest August level since 2022, according to the outplacement firm Challenger, Gray. Sequentially, job cuts increased 58% in August. Employers announced plans to hire 12,325 workers last month, down 23% month on month, but up 725% from a year earlier and marking the highest August total since 2022, the report showed.

"This is the quietest August since 2022, but is generally on average for the month since the mid-2010s," Andy Challenger, the firm's chief revenue officer, said in a statement. "What we'd like to see with low layoffs is an increase in hiring activity."

Official data are likely to show Friday that the US economy added 55,000 nonfarm jobs in August, compared with a loss of 23,000 reported for the previous month, according to a Bloomberg poll. The unemployment rate seen holding at 4.1%.

Consumer product companies announced 10,057 job cuts in August, its heaviest month for 2026, led by Procter & Gamble (PG) and Estee Lauder (EL), the Challenger report showed Thursday. Technology companies announced 6,103 cuts, its lowest monthly total for the year.

"While companies are making plans to hire more workers than last year, according to our numbers, it doesn't appear those positions are being filled quickly," Andy Challenger said.

Separately, government data showed Thursday that initial jobless claims rose by 2,000 to 206,000 in the week through Aug. 29 from the previous week's average that was adjusted upwards by 1,000. The consensus was for a 205,000 print in a Bloomberg poll. Seasonally adjusted continuing claims reached about 1.78 million for the week ended Aug. 22, in line with Wall Street's projections.

"The data leaves intact our view that the labor market is broadly in balance, with both the demand and supply of workers relatively soft, while layoffs remain low," Oxford Economics Associate US Economist Sara Godfrey said in remarks e-mailed to. "The subdued pace of jobless claims aligns with other data on job cut announcements by Challenger, Gray & Christmas."

On Wednesday, ADP (ADP) data showed US private sector employment grew at its slowest pace in seven months in August.

Last week, Federal Reserve Chair Kevin Warsh described the labor market as "quite stable," citing a 4.1% unemployment rate that he said remains low by historical standards.

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