Nearly 950,000 jobs have been cut in the US so far this year, the highest total since the early days of the pandemic in 2020, according to new data from outplacement firm Challenger, Gray & Christmas.
The report shows that job losses are growing fast in 2025. Employers are struggling with rising costs, slower hiring, and new technology changes. Experts now believe job cuts could pass 1 million by the end of the year.
"This level of layoffs is something we usually see during recessions or when big changes, like automation, hit industries," said Andy Challenger, senior vice president at the firm.
The labor market has been cooling off for months. Companies are not only cutting jobs—they're also hiring fewer people.
According to CBS News, Challenger's report found that businesses plan to hire 58% fewer workers this year compared to their plans in 2024.
So far, only about 205,000 new hires have been announced, the lowest hiring pace since 2009.
Private payroll data backs this up. In September, private employers cut 32,000 jobs, according to ADP. At the same time, the government's own monthly jobs report—usually a key update—is delayed due to a federal shutdown.
The U.S. labor market isn’t cooling….it’s stalling. And the data is brutal.
— Hany Girgis (@SanDiegoKnight) October 2, 2025
🚨 Employers announced 946,426 layoffs so far in 2025 — the highest year-to-date since 2020. (Reuters)
📉 Planned hiring? Just 204,939 jobs, the lowest since 2009, when the economy was crawling out of… pic.twitter.com/PkCVvQHIzu
September Layoffs Drop, Uncertainty Lingers
While the total number of cuts is high, there may be a small sign of relief. Employers announced about 54,000 layoffs in September, a 37% drop from August's total of nearly 86,000, Reuters said.
Challenger said this could mean companies are done with the worst of their job reductions—for now. But with uncertainty around the economy, some firms are still holding off on hiring or preparing for more cuts.
The Federal Reserve is keeping a close eye on the job market. Last month, the Fed cut interest rates by 0.25%, hoping to give businesses a break. Lower borrowing costs can help companies invest and hire more workers. The Fed is expected to make two more cuts later this year.
"Right now, we're dealing with a stagnating labor market, cost increases, and big changes from new tech," Challenger added. "Rate cuts might help, but employers are still cautious."
The federal government shutdown has only added to the pressure. About 750,000 federal workers are furloughed, and several major economic reports have been delayed.
Economists were expecting to see around 50,000 jobs added last month, but now that data is on hold.
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