Tech layoffs continue in the US

SHAFAQNA TURKEY – The US job market remains strong. Jobless claims fell last week. The number of applicants for unemployment benefits decreased by 18 thousand compared to the previous week; however, the number of applicants still exceeded general expectations.

The number of people who applied for unemployment benefits in the US fell from 246,000 to 228,000 last week. There were expected to be 200,000 people.

The number of people still receiving unemployment benefits in the country during the last week of March increased by 6 thousand people and reached 1 million 823 thousand people.

On the other hand, the number of vacancies in the US labor market fell below 10 million for the first time in 2 years. According to the Department of Labor, the US unemployment rate is about 3.6 percent. Accordingly, there are 1.7 vacancies for every unemployed person in the country.

Technical layoffs continue

The main reason for the reduction in open positions is the fact that the US Federal Reserve (Fed) raised interest rates to the highest level since the 1980s as part of the fight against inflation.

However, layoffs are still on the rise, especially at technology companies. Some companies that are having difficulty accessing loans and new investments continue to shrink.

U.S. companies laid off 15% more in March than they did in February, according to the latest data released by Challenger, Gray & Christmas, which tracks layoff data around the world.

According to the data, 89,703 people were laid off in March. Over the past year, the number of layoffs in the US has more than tripled. Tech companies have also led the way in recent layoffs.