The number of layoffs increased by 127% in November, with the number of layoffs climbing 127% from just one month ago, according to a report published on Thursday by Challenger, Gray Christmas.
The technology sector led the company's job cuts in November, leading to 76,835 job cuts, according to the analysis. That is 417% higher than the same time a year ago.
The amount of cuts announced last year was a 6% increase from the nearly 303,000 cuts announced last year, which has resulted in more than 320,000 jobs being cut. The technology sector has lost over 80,000 of its cuts this year.
Andrew Challenger, senior vice president of the Chicago-based Challenger, Gray Christmas, said the tech sector has announced the most job cuts this year. While other industries are cutting jobs at a slower pace, hiring seems to have slowed as well. A growing number of companies, particularly in big tech, are battening down the hatches as they warn of a grim economic outlook.
Amazon, Apple, DoorDash, Meta, Morgan Stanley, Lyft, and Twitter are some of the companies that have implemented hiring freezes or let workers go as the moves to raise interest rates at the fastest pace in decades in order to combat inflation.
The Fed is expected to trigger a recession with higher interest rates, which could cause consumers and businesses to stop spending, according to economists.
Fed policymakers have made it clear that they anticipate that unemployment will go up as a result of their interest-rate hike campaign.
The Fed's meeting showed that unemployment rose to 4.4% by the end of next year, up from the current rate of 3.5%. That is significantly higher than in June when policymakers saw the jobless rate go up to 3.7%. There's a chance that higher rates could cause increases in unemployment. Powell said in September that we need to have softer labor market conditions. If we want to set ourselves up light, the way to another period of a very strong labor market, we have to get inflation behind us. I wish there was a painless way to do that. The Challenger, Gray Christmas report precedes the publication of the November jobs report on Friday morning, which is expected to show that employers hired 200,000 workers after a gain of 261,000 in October. The unemployment rate is expected to hold steady at 3.7%.