Layoff pace in December hit lowest level since mid-2024, Challenger says

Announced layoffs fell sharply in December, hitting a 17-month low in a potential sign that the labor market is at least stabilizing, consulting firm Challenger, Gray & Christmas reported Thursday.

Planned job cuts totaled 35,553 for the month, a 50% slide from November and an 8% decrease from the same period a year ago. This was the lowest total since July 2024 in a year dominated by large layoffs and worries over the jobs picture.

“While December is typically slow, this coupled with higher hiring plans, is a positive sign after a year of high job cutting plans,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

For the full year, employers announced more than 1.2 million cuts, up 58% from a year ago and the highest level since the pandemic year of 2020. Even with the tame December level, this was the worst fourth quarter since 2008.

Companies also announced plans to hire 10,496 workers, up nearly 16% from November and 31% from a year ago.

While Challenger's numbers have reflected a big pickup this year in layoffs, that hasn't showed up in government statistics.

Weekly initial jobless claims have been stable through most of the year albeit with occasional spikes. However, hiring also has been weak, with monthly payroll growth averaging just 55,000. December payroll growth is expected to total 73,000, according to the Dow Jones consensus. That report will be released Friday.