As jobs in the sector are cut, a new report blames tariffs and threats of subsidies for electric vehicles.
Job cuts in November rose by more than 26% compared to the same month last year, when 45,510 jobs were lost, with the automotive sector responsible for 14,373 of the jobs cut, more than any other sector. A conflict that extends its impact internationally.
Among the reasons, Andrew Challenger , senior vice president at Challenger, Gray & Christmas , cited significant challenges explaining the employment decline, including potential tariffs affecting American automakers with factories overseas, intensifying competition from Chinese electric vehicle makers and changes to government subsidies for electric vehicles.
Job losses
Between January and November this year, a total of 722,566 jobs were cut, the largest number so far this year since 2009, with the exception of 2020, the first year of the COVID-19 pandemic. The technology sector was responsible for the largest number of job cuts in 2024 (130,701), followed by healthcare (47,249) and the automotive sector (45,820).
Most companies cutting jobs this year cited cost-cutting as the reason, with market/economic conditions the second most cited reason and business closures the third. In the United States, employers announced plans to hire 761,954 people so far this year, down 2% from plans through November of last year and the lowest total so far this year since 2015.
Only 11 of the 30 industries assessed by Challenger, Gray & Christmas saw a decline in layoffs this year. All other industries cut more positions this year than in 2023, with government jobs seeing the largest increase (2,030%).
Unemployment in the US
The unemployment rate is expected to rise to 4.2% in the U.S. government’s annual employment report, up from an estimated 4.1% in October and September. The labor market weakened significantly in October, with just 12,000 net new jobs added during the month, and an ADP report released Wednesday showed private payrolls grew less than expected in November.
President-elect Donald Trump has suggested eliminating a federal tax credit for electric vehicle buyers, and his proposed 25% tariff on Canadian and Mexican imports could hurt vehicle prices and availability in that country.
Economics professors warned in a study last month that repealing tax credits for electric vehicles could cut sales by as much as 27% and rents could be cut by more than half. If tariffs go through (Trump has said he would back off if Mexico and Canada worked to stem the flow of drugs and undocumented immigrants into the U.S.), they could raise prices by thousands of dollars.
Several major American automakers, including Ford and General Motors, have invested billions in Canadian manufacturing plants.
