New York. July 3: This year started a layoff spree, with tech, automobile, media, fintech, and other industries adopting mass workforce reductions that affected thousands of people. In the United States, job openings reportedly rose in May 2024 despite the higher interest rates’ impact on the labour market. However, even after facing a wave of layoffs, job openings also increased in the US. 

According to a report by Fortune, in May, US job openings increased slightly to 8.1 million from a revised 7.9 million vacancies in April. This increase in job openings, marking the first reading below 8 million since February 2021 as per the Labor Department, is a hopeful sign. On the other hand, it mentioned that the layoffs increased to 1.65 million in May from the previous 1.54 million mark in April. Unacademy Layoffs: Online Educational Platform Lays Off 250 Employees From Product, Sales, Marketing Department; Check Details

As per the report, the US economy and job market had been resilient in the face of the new Federal Reserve’s campaign about raising interest rates to rein in inflation. It mentioned that the Fed increased its benchmark rate 11 times in 2022 and 2023 and lifted it to a 23-year high. As per the report, the growing economy of the country expected to bring more jobs but the numbers had been steadily down since March 2022. 

Fortune said that despite the challenges, the job market in the United States offered around 1.25 jobs for the unemployed. In 2024, from January to March, the country’s economy grew 1.4% annually, which was the lowest rate since spring 2022. The US Labour Department report shared that employers added around 1,90,000 jobs last month, down from May, which had around 2,72,000. It said that the employment forecast would remain 4% low. Tech Layoffs 2024: More Than 1,00,000 Employees Laid Off Since January 2024, Around 41,000 People Lost Their Jobs in June Alone, Says Report.

According to the report, the high interest rates helped bring inflation closer to the target set by the Federal Reserve’s target of 2% a year from its four-decade-high rate of 9.1% in June 2022. Jerome Powell, the Chair of the Federal Reserve of the United States, said the progress towards lowering inflation resumed after stalling in early 2024. 

(The above story first appeared on LatestLY on Jul 03, 2024 12:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).