U.S. Labor Market in Limbo Amid Policy and Technological Shifts
U.S. employers cut fewer jobs in September, but 2023 hiring plans hit a post-2009 low. The report from Challenger, Gray & Christmas gains attention as economic release schedules suffer due to a government shutdown. Policy and AI advancements contribute to labor market stagnation and delayed economic data.
In September, U.S. employers announced fewer layoffs, yet 2023 hiring intentions have reached their lowest since 2009, according to Challenger, Gray & Christmas. The report, increasingly watched due to the ongoing government shutdown, highlights a labor market grappling with policy and technological shifts.
The labor market's struggle is underscored by the suspension of major economic releases amid the government's halt, including September's employment data and weekly jobless claims. Challenger's report found job cuts dropped by 37% last month to 54,064, yet announced cuts this year have reached an unprecedented high since 2020, exacerbated by Trump's federal workforce reductions and AI-driven layoffs in the tech sector.
Economic uncertainty stews as the Federal Reserve adjusts interest rates to support the market, while policy and technological changes suppress job growth. Nonfarm job gains drop significantly as AI transforms industries. The ongoing shutdown risks further economic data delays potentially affecting pivotal consumer, investor, and policy decisions.
(With inputs from agencies.)
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