“Companies appear to be streamlining and updating their processes, and workforce reductions
are increasingly beautifying a part of these decisions,” Andrew Challenger, vice president of Challenger, Gray & Christmas, said in a statement. “Consumer behavior and proceeds in technology are driving many of these cuts.”
The news comes amid conflicting signs for employment.
Nonfarm payrolls excrescence surged by 311,000 in January but then slumped to just 20,000 the following month. Still, the unemployment rate is exactly 3.8 percent, near the lowest level in 50 years.
Economists expect Friday’s Labor Department clock in on payrolls to show growth of 175,000 and the unemployment rate to stay unchanged. But there have been cracks lately that present the job climate is beginning to turn. For instance, private payrolls grew by just 129,000 in March, an 18-month low, according to a check into Wednesday from ADP and Moody’s Analytics.
The Challenger report pointed to worries about an economic slowdown as being a utter driver in the layoff intentions.
The auto industry led by sector in March with 8,838 layoffs, followed by energy with 8,149 writes. Financial firms were next with 4,884, while retail followed with 4,860. Retail has announced 46,061 crops this year, an 18.5 percent decrease from the first quarter of 2018.
“Several indications, such as the number of comrades filing for bankruptcy or closing operations, suggest we’re heading for a downturn. The recent proposal to close the southern border reckons to the uncertainty and may contribute to more cuts as companies try to adapt,” Challenger said.