Healthcare/products companies and manufacturers, including hospitals, announced the third-most job cuts in 2023 among 30 industries and sectors measured, according to one new analysis.
The finding comes from a Jan. 4 report from Challenger, Gray & Christmas, an executive coaching firm that examines job cuts by U.S.-based employers.
Healthcare/products companies and manufacturers, including hospitals, announced 58,560 job cuts in 2023, a 91% increase from the 30,626 cuts announced the year prior.
Across all industries and sectors measured, companies announced plans for 721,677 job cuts last year, up 98% from the 363,824 cuts announced in 2022. This is the highest annual total since 2,304,755 cuts were announced in 2020. With the exception of 2020, it is also the highest total since 2009.
"Layoffs have begun to level off, and hiring has remained steady as we end 2023. That said, labor costs are high. Employers are still extremely cautious and in cost-cutting mode heading into 2024, so the hiring process will likely slow for many job seekers and cuts will continue in Q1, though at a slower pace," Andy Challenger, labor expert and senior vice president of Challenger, Gray & Christmas, said in the report.
While job cuts increased in healthcare in 2023, the healthcare labor market showed some signs of stability toward the end of last year.
The quits rate was lower nationally at the end of November but stayed relatively consistent in the healthcare and social assistance sector, according to the Bureau of Labor Statistics, which released its latest Job Openings and Labor Turnover Summary Jan. 3. The quits rate stayed at 2.3% from September through November.