The number of layoffs announced by companies this year is growing, but compared to previous years, the total number is comparatively low.
- In November this year, companies announced 76,835 job cuts—many coming from the tech sector which has announced 81,000 in cuts this year.
- Companies have announced 320,173 job cuts—6% higher than last year.
- However, the numbers remain comparatively low as this year marks the second lowest level of job cuts since 1993.
- Additionally, the unemployment rate has decreased to 3.7% in October this year compared to 4.6% in October last year.
Why it’s news
Several major companies—especially tech—have announced major layoffs this year. Facebook notably announced that 11,000 would be laid off, marking the first major layoffs for the company.
In November this year, companies announced 76,835 cuts. This month marks a dramatic 127% increase from October’s 33,843 announced cuts. Last year at the same time companies announced 14,875 cuts.
November is the sixth month this year that announced layoffs were higher than the same time the previous year.
The latest announcement brings the total number of job cuts announced this year to 320,173—a 6% increase from last year. November’s cut announcements officially marks more cuts announced in 2022 than 2021. Tech companies are leading the layoffs with 81,000 cuts announced this year so far.
Though the number seems high, compared to previous data compiled by outplacement firm Challenger, Gray & Christmas, this year is actually seeing the second lowest layoff numbers since 1993. The lowest number of layoffs recorded was last year.
According to OTJ Architects CPO Jordana Coppola, the job market is still strong and current employees or job seekers shouldn’t be too worried about the layoff announcements.
“Currently, there are more job layoffs in the tech world,” she says. “Many have said this is not indicative of the near future. The tech layoffs seem to be directly related to the e-commerce boom during the pandemic, however many are watching to see what will happen next.”
Backing up a bit
Before the pandemic began, workers were closely watching the 2019 job market. In April 2019, layoffs were at some of the highest levels in a decade. Challenger, Gray & Christmas found in 2019 that companies were planning to cut 592,556 jobs that year—a 10% increase from the year before.
That year also marked some of the highest levels of job cuts in the decade, only exceeded in 2009 and 2011.
In November 2021, announced job cuts had decreased 34% to 14,875—the lowest level since 1993. That number was 77% lower than the previous year during the COVID-19 pandemic.
During November that same year the total number of announced layoffs was 302,018.