Hiring slips to 14-year low as job cuts surge
Employers based in the United States cut 153,074 jobs in October, a 175% increase from a year earlier and the highest total for the month of October since 2003, according to data from global outplacement firm Challenger, Gray and Christmas.
In all, the first 10 months of the year have brought a total of nearly 1.1 million job cuts. That's up 65% from the same ten-month period in 2024. Year-to-date, job cuts are at the highest level since 2020.
October's "much higher" pace of job cuts comes as industries continue to correct following the hiring boom of the pandemic, Andy Challenger, chief revenue officer for the firm, said in a statement Thursday. The rise of AI adoption and softening corporate spending is also driving hiring freezes.
"Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market," Challenger said.
Among the hardest-hit sectors for job cuts are warehousing, technology, retail, services, news, media, consumer products and non-profits.
Furthermore, a higher number of companies announced plans to cut jobs in October than had done so earlier this year. The report tracked roughly 450 job cut plans in October.
The uptick in layoffs, especially toward the end of the year, is unusual, according to Challenger.
"With the onset of social media, and the ability for workers to share their negative experiences with their employers, the trend of announcing layoffs before the holidays fell away, a practice that seemed particularly cruel," he said. "It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025."
Thousands of flight cancellations expected across US amid shutdown
As the government shutdown drags into its sixth week, the Federal Aviation Administration announced it will begin reducing air traffic across at least 40 of the nation's busiest markets.
The reduction, set to take effect Friday, is expected to account for about 10% of all air traffic and trigger a chain of delays and cancellations. It comes as a means to relieve air traffic control workers who are working without pay during the ongoing shutdown, which started on Oct 1.
So far, 40 airports have been identified for the reductions. Those include Atlanta, Chicago, Orlando and San Francisco, as well as the major airports in New York City and the Los Angeles area.
In all, the reductions are expected to affect thousands of flights. Already, major airlines, including American Airlines, Delta, Southwest and United, have issued statements updating customers about potential impacts on flight plans.
Opportunity zones benefit from ongoing home price growth
Areas targeted by Congress for redevelopment saw greater home price growth in the three-month period between July and September, according to data released this week by real estate analytics firm ATTOM.
Known as opportunity zones, the areas are defined in the Tax Cuts and Jobs Act of 2017 as "census tracts in or alongside low-income neighborhoods that meet various criteria," the report said.
The ATTOM report found that in the third quarter, 11.3% of opportunity zones hit their highest median home price since the 2008 Great Recession. In 36.2% of the zones analyzed, home prices grew by at least 10%.
“Opportunity zones were just as likely to see home prices grow as neighborhoods outside these zones, showing these areas are also benefitting from this sustained rise in home prices,” Rob Barber, chief executive officer of ATTOM, said in a statement. “But many of these zones still have a long way to go, since their median sales prices are well below areas that haven’t been targeted for development."