Layoffs rising as the U.S. economy slows

More U.S. companies are cutting jobs and freezing hiring as the economy cools, a sign that efforts by the Federal Reserve to tamp down inflation are hitting the labor market.

Layoff announcements spiked in September, according to outplacement firm Challenger, Gray & Christmas. Job cuts last month rose to nearly 30,000, an increase of 46% from August, while the number of companies announcing hiring plans last month fell to the lowest level in more than a decade, the firm said.

“Some cracks are beginning to appear in the labor market. Hiring is slowing and downsizing events are beginning to occur,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement.

Government figures also point to a slowing job market. Jobless claims for the week ending Oct. 1 rose by 29,000, to 219,000, the Labor Department said on Thursday. The total number of Americans collecting unemployment aid rose by 15,000 to nearly 1.4 million for the week ending September 24.




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