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U.S. January Layoff Plans Highest Since 2009, With Hiring Intentions Sinking

Private indicators point to a cooling job market driven by narrow health-care hiring plus large cuts at UPS and Amazon.

Overview

  • Employers announced 108,435 job cuts in January, up 205% from December and 118% from a year earlier, the highest January total since 2009, according to Challenger, Gray & Christmas.
  • Companies outlined just 5,306 planned hires, the lowest January on record in Challenger’s series that began in 2009.
  • Transportation led planned cuts largely due to UPS’s plan to eliminate up to 30,000 roles, with technology next as Amazon plans 16,000 reductions.
  • ADP estimated private payrolls rose by only 22,000 in January, with gains concentrated in education and health services and losses in professional and business services.
  • The Labor Department reported December job openings fell to 6.5 million, initial jobless claims rose to about 231,000 in late January, and the BLS January jobs report has been delayed.