US layoffs accelerate to 4-year high

US layoffs rose on an annual basis in October for the seventh successive month, bringing the year-to-date (YTD) total to a four-year high.

According to the layoff report issued Thursday by Challenger, Gray & Christmas, employers reported 664,800 job cuts from the beginning of this year through October, up 3.7% compared to the first 10 months of 2023.

In October, companies announced plans to cancel 55,590 jobs, down 23.7% from the 72,800 announced in September, but up 51% from the 36,800 jobs recorded in October last year.

Aerospace and defense industries topped the list of sectors announcing layoffs in October with 18,400, in light of Boeing’s announcement of 17,000 job cuts.

On an annual basis, employers reported plans to add 750,330 jobs, the lowest since employers planned to hire 724,500 workers in 2016.

The data suggests the labor market is still struggling with high borrowing costs, putting pressure on the Fed to accelerate the pace of interest rate cuts at its meetings scheduled for Nov. 6-7, while investors are awaiting Friday's jobs data.