Unexpected Layoffs Now Hit The State of Michigan

Unexpected layoffs now hit the state of Michigan as a new report ranks it among the top in terms of job cuts this year.

A Challenger report shows that the state of Michigan ranked #5 amongst the states with the highest layoffs report in 2024.

California ranked number 1, New York 2nd, Texas 3rd, and D.C. 4th.

So far for 2024, there has been a total of 15,995 layoffs reported in the state of Michigan.

Last year, there were 26,037 layoffs in the state according to the report.

In May alone, there were a total of 1,690 layoffs in Michigan.

And in terms of WARN layoffs in Michigan, a total of 36 WARN notices were filed with the Michigan Department of Technology, Management and Budget, each notice signaling impending mass layoffs within various businesses across the state. 

Andrew Challenger, the firm’s vice president, offered insights into the driving forces behind these job cuts.

“Employers across the board are citing vague reasons for cutting jobs, but we know artificial intelligence and the disruption that follows is the cause, at least in part, for many companies’ plans.

The disruption is impossible to refute. That said, other economic factors are also at play in many of these announcements,” he stated.

The report’s findings paint a grim picture not only for Michigan but for the entire nation, reports Ash Jurberg on NewsBreak.

“Hiring plans across the United States have taken a significant hit, with employers announcing plans to hire only 50,833 workers this year, a staggering 50% decline from the 101,833 new hires announced through the same period last year.

This marks the lowest total in the first five months of the year since 2014, when 45,512 hiring plans were recorded.”

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Also Read: Retirees Will Now Receive More Money For Social Security

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Market News Today - Unexpected Layoffs Now Hit The State of Michigan.
Market News Today – Unexpected Layoffs Now Hit The State of Michigan.

Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.

First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.

Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.

That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.

The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.

US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.

Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.

Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.

“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”

Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.

The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.

While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”

Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”

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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia

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Market News Today - Unexpected Layoffs Now Hit The State of Michigan.
Market News Today – Unexpected Layoffs Now Hit The State of Michigan.

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