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The job market is strong. So why did layoffs double in January?

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Expert on major media layoffs, tips for job seekers, and ensuring job security


Expert on major media layoffs, tips for job seekers, and ensuring job security

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The job market remains one of the U.S. economy’s main engines, with the nation’s unemployment rate near a 50-year low and wages finally pulling ahead of inflation. At the same time, major companies in technology, finance, media and other key sectors have all recently announced sizable job cuts, with layoffs nationwide more than doubling in January from a month earlier.

U.S. companies in January announced more than 82,300 job cuts, a 136% increase from December, according to a new analysis from executive coaching firm Challenger, Gray & Christmas. 

That may raise questions about the strength of the labor market as well as concerns among employees about their job security. On Friday, new government data is expected to show that businesses hired about 177,000 workers, with the jobless rate ticking up slightly to 3.8% from 3.7% in December, according to economists polled by FactSet.

Recent layoffs are mostly clustered in a few industries, with experts saying that the job market as a whole remains strong. Here’s what is driving the recent spike in layoffs and what it tells us about the state of the economy.

Is the job market in bad shape?

Not according to economists, who point to the nation’s relatively low jobless rate and ongoing hiring.

Even so, the job market has definitely cooled from the hiring frenzy that occurred in 2021 and 2022. During those years, businesses snapped up workers as the economy began to recover from the initial shock of the pandemic, leading to a job market so tight it spurred millions of Americans to switch jobs in search of better pay and working conditions — a trend dubbed the “Great Resignation.”

Americans may be comparing the unusually strong job market in those years with today’s cooler hiring. The U.S. economy added 4.8 million jobs in 2022, with that pace slowing to 2.7 million new jobs in 2023 — the latter is still higher than hiring in years prior to the pandemic, according to JPMorgan Wealth Management.

“[L]abor market conditions have loosened, but the job market remains healthy,” analysts with Oxford Economics said in a report this week.

One encouraging sign: 57% of small businesses — which account for roughly 46% of private-sector employees — plan to add jobs this year, according to a new Goldman Sachs survey of 1,459 small business owners taken earlier this month. Three-quarters also expressed optimism about their financial prospects this year, the investment bank found.

How do the 2024 layoffs compare with prior years?

Excluding January of 2023, the January layoffs this year represent the highest number of job cuts announced in the first month of the year since January 2009, according to Challenger, Gray & Christmas.

At the time, the U.S. economy was mired in the Great Recession, spurring businesses to cut more than 241,000 jobs that month. 

Who is getting laid off in 2024? 

January’s job cuts are mostly among financial and tech businesses, Challenger, Gray & Christmas noted. 

Financial firms announced the largest number of layoffs last month, at more than 23,200, which represents the highest number of job cuts for the industry since September 2018, when more than 27,000 jobs were cut. One of the biggest layoff announcements in the sector came from Citigroup, which said it plans to cut 20,000 jobs.

Tech employees suffered the second-largest number of layoffs, with almost 16,000 people losing their jobs, according to the analysis. Alphabet-owned Google, Microsoft and Salesforce were among the big tech companies slashing thousands of jobs last month.

Media businesses also increased their job cuts, although the number of layoffs is relatively small. News businesses cut total of 528 workers in January, a 1,660% increase from December, Challenger, Gray & Christmas noted.

Why are companies cutting workers?

Some companies are seeking to cut costs amid the rise in interest rates, while others are shedding workers after a hiring binge during the pandemic. Other businesses are refocusing to invest in artificial intelligence, which has prompted job cuts in some of their non-AI business units.  

“[T]hese layoffs are also driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors, though in most cases, companies point to cost-cutting as the main driver for layoffs,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas, in a statement.

Will there be more layoffs in 2024?

That is likely given the push by many businesses to trim costs. The jobless rate could rise to 4.1% this year, according to a recent forecast from Oxford Economics.

Federal Reserve Chair Jerome Powell said this week that the central bank wants to see the labor market cool without causing a jump in joblessness — part of a so-called soft landing, or a cooling of inflation and economic growth, while avoiding a recession.

“We’re hoping to see … a continuation of what we have seen, a labor market coming into better balance without a significant increase in unemployment,” Powell said.



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Tajikistan nationals with alleged ISIS ties removed in immigration proceedings, U.S. officials say

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When federal agents arrested eight Tajikistan nationals with alleged ties to the Islamic State terror group on immigration charges back in June, U.S. officials reasoned that coordinated raids in Los Angeles, New York and Philadelphia would prove the fastest way to disrupt a potential terrorist plot in its earliest stages. Four months later, after being detained in Immigration and Customs Enforcement (ICE) facilities, three of the men have already been returned to Tajikistan and Russia, U.S. officials tell CBS News, following removals by immigration court judges. 

Four more Tajik nationals – also held in ICE detention facilities – are awaiting removal flights to Central Asia, and U.S. officials anticipate they’ll be returned in the coming few weeks. Only one of the arrested men still awaits his legal proceeding, following a medical issue, though U.S. officials speaking on the condition of anonymity to discuss the sensitive proceedings indicated that he remains detained and is likely to face a similar outcome. 

The men face no additional charges – including terrorism-related offenses – with the decision to immediately arrest and remove them through deportation proceedings, rather than orchestrate a hard-fought terrorism trial in Article III courts, born out of a pressing short-term concern about public safety. 

Soon after the eight foreign nationals crossed into the United States, the FBI learned of the potential ties to the Islamic State, CBS News previously reported. The FBI identified early-stage terrorist plotting, triggering their immediate arrests, in part, through a wiretap after the individuals had already been vetted by U.S. Customs and Border Protection, law enforcement sources confirmed to CBS News in June. 

Several months later, their removals following immigration proceedings mark a departure from the post-9/11 intelligence-sharing architecture of the U.S. government. 

Now facing a more diverse migrant population at the U.S.-Mexico border, a new effort is underway by the Department of Homeland Security, Department of Justice and the Intelligence Community to normalize the direct sharing of classified information – including some marked top-secret – with U.S. immigration judges. 

The more routine intelligence sharing with immigration judges is aimed at allowing U.S. immigration courts to more regularly incorporate derogatory information into their decisions. The endeavor has led to the creation of more safes and sensitive compartmented information facilities – also known as SCIFs – to help facilitate the sharing of classified materials. Once considered a last resort for the department, Secretary Alejandro Mayorkas has sought to use immigration tools, in recent months, to mitigate and disrupt threat activity.

The immigration raids, back in June, underscore the spate of terrorism concerns from the U.S. government this year, as national security agencies point to a system now blinking red in the aftermath of the Oct. 7 attacks by Hamas on Israel, with emerging terrorism hot spots in Central Asia. 

A joint intelligence bulletin released this month, and obtained by CBS News, warns that foreign terrorist organizations have exploited the attack nearly one year ago and its aftermath to try to recruit radicalized followers, creating media that compares the October 7 and 9/11 attacks and encouraging “lone attackers to use simple tactics like firearms, knives, Molotov cocktails, and vehicle ramming against Western targets in retaliation for deaths in Gaza.”

In May, ICE arrested an Uzbek man in Baltimore with alleged ISIS ties after he had been living inside the U.S. for more than two years, NBC News first reported. 

In the past year, Tajik nationals have engaged in foiled terrorism plots in Russia, Iran and Turkey, as well as Europe, with several Tajik men arrested following March’s deadly attack on Crocus City Hall in Moscow that left at least 133 people dead and hundreds more injured. 

The attack has been linked to ISIS-K, or the Islamic State Khorasan Province, an off-shoot of ISIS that emerged in 2015, founded by disillusioned members of Pakistani militant groups, including Taliban fighters. In August 2021, during the U.S. military withdrawal from Afghanistan, ISIS-K launched a suicide attack in Kabul, killing 13 U.S. service members and at least 170 Afghan civilians. 

In a recent change to ICE policy, the agency now recurrently vets foreign nationals arriving from Tajikistan, Uzbekistan and other Central Asian countries, detaining them while they await removal proceedings or immigration hearings.

Only 0.007% of migrant arrivals are flagged by the FBI’s watchlist, and an even smaller number of those asylum seekers are ultimately removed. But with migrants arriving at the Southwest border from conflict zones in the Eastern Hemisphere, posing potential links to extremist or terrorist groups, the White House is now exploring ways to expedite the removal of asylum seekers viewed as a possible threat to the American public. 

“Encounters with migrants from Eastern Hemisphere countries—such as China, India, Russia, and western African countries—in FY 2024 have decreased slightly from about 10 to 9 percent of overall encounters, but remain a higher proportion of encounters than before FY 2023,” according to the Homeland Threat Assessment, a public intelligence document released earlier this month. 

A senior homeland security official told reporters in a briefing Wednesday, that the U.S. is engaged in an “ongoing effort to try to make sure that we can use every bit of available information that the U.S. government has classified and unclassified, and make sure that the best possible picture about a person seeking to enter the United States is available to frontline personnel who are encountering that person.”

Approximately 139 individuals flagged by the FBI’s terror watchlist have been encountered at the U.S.‑Mexico border through July of fiscal year 2024. That number decreased from 216 during the same timeframe in 2023. CBP encountered 283 watchlisted individuals at the U.S.-Canada border through July of fiscal year 2024, down from 375 encountered during the same timeframe in 2023.

“I think one of the features of the surge in migration over recent years is that our border personnel are encountering a much more diverse and global population of individuals trying to enter the United States or seeking to enter the United States,” a senior DHS official said. “So, at some point in the past, it might have been primarily a Western Hemisphere phenomenon. Now, our border personnel encounter individuals from around the world, from all parts of the world, to include conflict zones and other areas where individuals may have links or can support ties to extremist or terrorist organizations that we have long-standing concerns about.”

In April, FBI Director Christopher Wray warned that human smuggling operations at the southern border were trafficking in people with possible connections to terror groups.

“Looking back over my career in law enforcement, I’d be hard-pressed to think of a time when so many different threats to our public safety and national security were so elevated all at once, but that is the case as I sit here today,” Wray, told Congress in June, just days before most of the Tajik men were arrested.

The expedited return of three Tajiks to Central Asia required tremendous diplomatic communication, facilitated by the State Department, U.S. officials said.  

Returns to Central Asia routinely encounter operational and diplomatic hurdles, though regular channels for removal do exist. According to agency data, in 2023, ICE deported only four migrants to Tajikistan.

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Here Comes the Sun: Ralph Macchio and more

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Actor Ralph Macchio sits down with Lee Cowan to discuss the sixth and final season of “Cobra Kai.” Then, Tracy Smith visits The Broad museum in Los Angeles to learn about Mickalene Thomas’ exhibition “All About Love.” “Here Comes the Sun” is a closer look at some of the people, places and things we bring you every week on “CBS Sunday Morning.”

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