The number of layoffs in American companies in the first eight months reached a four-year low, continuing the pattern of low layoffs with low tactics.

In the first eight months of 2026, the number of planned layoffs by American companies has fallen to the lowest level in four years, further indicating that businesses are still reluctant to reduce their workforce. Data released on Thursday by the U.S. employment consultancy Challenger, Gray & Christmas showed that companies have announced layoffs of 529,914 people so far this year, the lowest for the same period since 2022, when demand for labor was still very strong post-pandemic. Meanwhile, the number of hiring plans announced by companies through August has reached the highest level since 2023. Andy Challenger, the company's Chief Revenue Officer, stated, "We hope that increased hiring activity can occur in conjunction with a reduction in layoffs. According to our data, although companies are planning more recruitment than last year, these positions do not seem to be filled quickly." Many economists still believe that the U.S. job market remains in a state of "low hiring, low layoffs," which has been prevalent over the past few years. Weekly initial jobless claims data show that signs of large-scale layoffs are not apparent, and the monthly employment report to be released on Friday is expected to indicate that the unemployment rate held steady at 4.1% in August. Challenger's report also noted that artificial intelligence, which had been the primary reason mentioned for layoffs since February, is no longer at the top of the list as of August, with "restructuring" now ranking first among reasons for job cuts. However, considering the situation from the beginning of the year, artificial intelligence remains a major reason for layoffs. It is noteworthy that the non-farm report, to be released on Friday, is not only a "health check" for the job market but also one of the most important economic data points ahead of the Federal Reserve's monetary policy meeting in mid-September. The market expects that the total number of non-farm jobs in August will increase by 55,000, rebounding from the unexpected drop of 23,000 jobs in July. However, Bank of America believes that the upcoming non-farm employment report is merely an "appetizer" ahead of the Federal Reserve's meeting on September 15-16. The non-farm data is unlikely to be a decisive factor for raising interest rates; the key will be the consumer price index (CPI) for August, set to be released on September 11. The market expects the inflation rate to be 3.4%, unchanged from July, but considering geopolitical pressures, the actual inflation rate may exceed expectations. Bank of America maintains its forecast of a rate hike by the Federal Reserve in September. The CME FedWatch tool shows that the probability of a 25 basis point rate hike by the Federal Reserve in September has fallen from about 68% the previous day to around 60%. Due to the disappointing private sector employment figures that fell short of market expectations, bets on a rate hike by the Federal Reserve in September have moderated.