United States Challenger Job CutsMay 2022 Data - 1994-2021 Historical

US-based companies announced plans to cut 20,712 jobs from their payrolls in May of 2022, the lowest reading in three months. It is 15.8% lower than the 24,586 cuts announced in May of 2021. So far this year, employers announced plans to cut 100,694 job cuts, the lowest on record for the first five months of the year. Still, four industries saw more job cuts announced in May than in the previous four months of the year combined: technology (4,044, the highest since December of 2020); fintech (2,059); construction (817); and automotive (2,918). Meanwhile, employers in the US announced 126,083 hiring plans in May, primarily on plans from Ace Hardware to hire 40,000 associates and 7-Eleven, which plans to hire 60,000. So far this year, there were 612,686 hiring announcements, the second-highest January-May hiring total on record.

US-based companies announced plans to cut 24,286 jobs from their payrolls in April of 2022, the most since May last year, and a 14% increase from the 21,387 announced in March. It is the first time this year job cuts were higher than the corresponding month a year earlier. Entertainment/Leisure led all industries with 3,675 job cuts, followed by the Services sector (3,453), Financial companies (2,772) and Retailers (2,213). So far this year, employers announced plans to cut 79,982 job cuts, the lowest recorded January-April total on record. In April, employers announced 88,662 hiring plans, down 16% from March. "Job cut plans appear to be on the rise, particularly as companies assess market conditions, inflationary risks, and capital spending. Despite this, job openings are still at record highs. Workers who are being cut will have lots of opportunities and will likely land quickly,” said Andrew Challenger, Senior VP of Challenger, Gray & Christmas, Inc.

US-based companies announced plans to cut 21,387 jobs from their payrolls in March of 2022, the most in five months. Most cuts were due to store, unit, or plant closing (5,301) and vaccine refusal (3,278). By sector, for the fourth consecutive month, Health Care/Products announced the most job cuts (4,995). “There appears to be a return of a healthier churn in the labor market. Some U.S. Employers report hiring is getting easier, particularly with the incentives many companies put in place to attract and retain talent. Meanwhile, inflation impacts and war concerns are causing workers who were depending on savings or investments to seek out paid employment", said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc. In Q1, employers announced 55,696 cuts, down 62% year-on-year, and the lowest quarterly total since Q3 2021, when 52,560 cuts were recorded.