Bond prices rallied and stock prices fell this morning on news that layoffs rose sharply, according to the Challenger Report, which was titled "JOB CUTS SURPASS 1 MILLION; HIGHEST OCTOBER TOTAL SINCE 2003. COMPANIES CITE COST-CUTTING, AI IN OCTOBER."
That headline is somewhat sensational. It refers to the past 12 months through October. The actual number of layoffs during the month was 153,074, as the report notes in its first sentence (chart). So far, October's jump hasn't been confirmed by initial unemployment claims. The official data are available only through September 19 because of the government shutdown. But Bloomberg News estimates that jobless claims decreased to about 218,000 in the week ended October 25 from a revised 231,000 in the prior week. Those are low readings.
Most of October's announced layoffs occurred in the warehouse and technology industries (chart). Automation and robotics are boosting productivity in warehousing. AI is doing the same in technology.
Announced technology layoffs have been high over the past two years (chart). The industry might have hired too many workers in 2022 and 2023.
