Record High Job Cuts in December as Companies Adapt to Changing Landscape
- Retail job cuts spiked in December
- U.S. companies are bracing for uncertainty with the new administration
- Job cuts rose 5.5% year over year in 2024
- Highest total of job cuts since 2020 (excluding 2020 pandemic)
- Retail hiring slowed in October and November
- 71% of respondents encouraged staffers to take additional shifts in October
- 81% cross-trained workforce to handle more tasks
- U.S. retail sales increased 3.8% year over year from Nov. 1 to Dec. 24
U.S. companies are preparing for the unknown with the new administration, leading to slower hiring and increased layoffs across various sectors. In 2024, job cuts rose by 5.5% year over year, resulting in the highest total since 2020 (excluding pandemic effects). Retailers anticipated a softening economy and labor market, which led to fewer hires during the holiday season. Instead of hiring more workers, 71% of UKG survey respondents encouraged staffers to take additional shifts, while 81% cross-trained their workforce for multiple tasks. Despite this, U.S. retail sales increased by 3.8% from November 1st to December 24th compared to the previous year.
Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about the increase in job cuts in the U.S., citing a reputable source (Challenger) and discussing the reasons behind it. It also includes relevant data from Mastercard’s SpendingPulse report on holiday sales. However, there is some repetition of information and the UKG survey results could be considered tangential to the main topic.
Noise Level: 6
Noise Justification: The article provides relevant information about the impact of the new administration on U.S. companies’ hiring practices and job cuts, but it could benefit from more in-depth analysis or context on the specific policies that are causing these changes and their long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the impact of a new administration on U.S. companies’ hiring practices and job cuts, which can affect financial markets through changes in employment rates and consumer spending. The mention of retail sales and their increase during the holiday season also relates to financial markets as it indicates consumer behavior.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it’s not the main topic.
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