US Employers Cut Over 150,000 Jobs in October, Highest for the Month in Over 20 Years

US-based employers made significant job cuts in October, reporting over 150,000 layoffs, which marks the biggest reduction for the month in more than 20 years. Technology companies spearheaded these job cuts in the private sector, followed by the retail and services industries. The primary reasons cited for these layoffs were intensifying cost-cutting efforts and the integration of artificial intelligence (AI) into business operations. Layoffs in October saw a substantial surge of 175% when compared to the same period last year.

Year-to-date, from January to October, employers announced approximately 1,099,500 job cuts, a 65% increase from the 664,839 cuts recorded in the corresponding period of the previous year. This year's job cut figures are the highest since 2020. Experts suggest that some industries are adjusting after a hiring boom during the pandemic, while AI adoption, softening consumer and corporate spending, and rising costs are forcing companies to tighten their belts and freeze hiring.

Impact This news indicates a significant economic slowdown in the US, which can affect global markets. For Indian investors, it signals potential reduced demand for exports, global economic uncertainty, and a cautious investment environment. The impact on the Indian stock market is estimated at 4/10 due to indirect global effects.

Difficult Terms:

* **Artificial Intelligence (AI)**: Technology that enables computers and machines to mimic human intelligence and problem-solving capabilities, often used to automate tasks. * **Outplacement company**: A company that provides services to help employees who have been laid off find new jobs. * **Cost cuts**: Efforts by businesses to reduce their expenses and improve profitability. * **Government shutdown**: A situation where non-essential government operations cease due to a failure of the legislature to pass appropriations bills.