Record Job Losses in March 2024 Driven by Government Layoffs
U.S. job losses surged in March 2024, with over 275,000 positions eliminated, marking the highest figure recorded for this month. This drastic increase highlights significant shifts within various sectors.
Details of Job Losses
In total, 275,240 individuals were laid off, representing a 60% uptick from the 172,017 jobs cut in February 2024 and a staggering 205% increase from March 2023, where 90,309 positions were lost.
These layoffs are reminiscent of the early pandemic days when drastic reductions in workforce occurred, peaking at 671,129 in April 2020 and reaching 397,016 in May 2020.
Government Influence on Layoffs
The layoffs in March were largely attributed to initiatives from the U.S. Department of Government Efficiency (DOGE), a federal agency formed by an executive order from President Donald Trump and led by Elon Musk. DOGE’s actions reduced its employee numbers to 216,215 during this month.
According to Andrew Challenger, senior vice president at Challenger, “Last month, the Jobcut Announcement was dominated by the Government Efficiency Office (DOGE) plan to eliminate federal positions. If not, it would have been a pretty quiet month for the layoffs.”
Impact and Future Outlook
DOGE’s strategy aims to reduce the federal workforce, which exceeds 2.4 million employees, by 75% through various means including job cuts and acquisitions. The agency has already succeeded in cutting 279,445 jobs this year, with plans that include significant reductions at the Internal Revenue Service (IRS).
As part of its restructuring efforts, DOGE is encouraging voluntary resignations by offering financial incentives to federal employees until the end of September.
Sector-Specific Layoffs
Beyond government layoffs, the technology, finance, and retail sectors have also seen major layoffs, with each shedding a minimum of 10,000 jobs in March. Noteworthy companies such as Sequoia Capital and Block, the fintech firm founded by Jack Dorsey, reported substantial job cuts, with Sequoia closing its Washington D.C., office and letting go of over 900 employees.
Employment Trends in the U.S.
Despite the high rate of job losses, the private sector managed to add 155,000 jobs in March, according to a recent report by ADP Research. This figure was above Dow Jones forecasts but still failed to offset the more than 275,000 jobs lost during the month, highlighting a challenging employment landscape.