Why did job losses peak in January, and what was the context?

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Job losses peaked in January mainly due to year-end transitions and business restructuring, with the government saying the broader labour-market situation remained under control.

The Economy Minister said the highest number of job losses recorded this year occurred in January, when 10,658 individuals were affected. He attributed the January peak largely to year-end transitions and business restructuring processes, while stressing that the overall situation remained under control in terms of job displacement. He also placed this within a wider context of global economic uncertainty, including energy price pressures and supply chain disruptions, where the government was monitoring job losses alongside hiring activity.
January recorded 10,658 job losses as the year turned over
The government reported that job losses peaked in January with 10,658 individuals affected. The minister linked this timing to the annual cycle, describing it as largely connected to year-end transitions that can trigger workforce changes as businesses close out the year and reset operations.
Business restructuring was described as the main driver behind the spike
Beyond the year-end timing, the minister said the January pattern was closely tied to business restructuring processes. In his account, this meant the job losses were happening as companies reorganised, rather than reflecting a sudden collapse in the labour market.
The government said displacement remained under control despite the peak
Although job losses were being monitored, the minister said the situation remained under control in terms of job displacement. He also pointed to hiring activity as an important indicator for whether the trend was temporary or whether it could signal longer-term downsizing.
External pressures were cited, but unemployment stayed stable around 2.9 to 3 per cent
The minister framed the labour-market context as one of external pressures, including energy price pressures and supply chain disruptions, alongside global economic uncertainty. He said unemployment remained stable at around 2.9 to 3 per cent, and that the current pressures were largely driven by supply-side factors rather than weak demand.

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Why did job losses peak in January, and what was the context?

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