• Although layoffs remain low overall, job cuts are increasing in some areas of the economy.
• Companies are laying off workers, slowing hiring, and turning to AI to cut costs.
• These are the top 9 industries with the most layoffs, according to Challenger, Gray & Christmas.

All eyes have been on the job market as investors wait to see if the economy will reach a soft landing.

Layoffs have remained low this year, and the September jobs report revealed that several industries such as healthcare, government, social assistance, and construction are steadily adding jobs.

But there are signs that layoffs are creeping up and job openings are drying up, according to an analysis by human resources firm Challenger, Gray & Christmas, which specializes in career transition and outplacement services.

Challenger, Gray & Christmas examined the latest Job Openings and Labor Turnover Survey (JOLTS) and found that companies have announced 609,242 job cuts so far in 2024, an increase of 0.8% from this time last year. US employers announced 72,821 cuts in September alone, a 53% increase from September of last year.

Layoffs are being exacerbated by AI, the firm found. Companies are finding ways to adopt the technology and replace jobs. AI was responsible for 5,616 job cuts in September and 12,742 in 2024 overall. So far, all of these layoffs have been within the technology industry.

Employer hiring plans are also on the decline. US employers announced 403,891 planned hires in September, a 32% decrease from this time last year. This decrease is especially significant given that September is historically a peak hiring month, as employers scramble to fill positions before the end of the fiscal year and the holiday season.

These signs point to companies trying to boost profitability in a slowing economy through cost cutting initiatives such as automating jobs with AI or reducing labor costs. In September, cost-cutting was cited as the reason for 15,750 layoffs. Another 14,054 were due to store closings, and 6,933 were due to general market conditions.

“We’re at an inflection point now, where the labor market could stall or tighten. It will take a few months for the drop in interest rates to impact employer costs, as well as consumer savings accounts,” the firm’s Senior Vice President Andrew Challenger said.

The 9 sectors shedding the most jobs

Technology topped the list for the most amount of layoffs of any sector this year. While tech layoffs aren’t as rampant as in recent years, they remain elevated as companies recalibrate from pandemic overhiring.

Although blue-collar workers are historically most impacted by economic downturns and layoffs, elevated tech sector job cuts indicate that white-collar jobs are at stake at the moment. And with a significant portion of these layoffs coming from AI adoption, it seems like there’s more job disruption in the cards.

But tech isn’t the only area seeing a cooling job market. Below, we’ve listed the 9 parts of the economy with the greatest amount of layoffs in 2024, as well as the increase or decrease compared to this time last year.