U.S. job cuts down in 2025, hiring plans slump to 16-year low
U.S. employers announced fewer layoffs in September, yet hiring plans remain at their weakest level since 2009, according to data from outplacement firm Challenger, Gray & Christmas.
The report, released on October 2, said planned job cuts fell 37% from August to 54,064 in September. However, employers have announced 946,426 layoffs year-to-date, the highest since 2020. Hiring intentions totaled just 204,939 positions, the lowest year-to-date figure in 16 years.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, described the situation as "a stagnating labor market, cost increases and a transformative new technology." He said expected Federal Reserve rate cuts could bring some stability in the final quarter.
The federal government accounts for nearly 300,000 cuts as part of a campaign to shrink the federal workforce. President Donald Trump has tied the downsizing to budget disputes, warning of further cuts in the event of a government shutdown.
Technology companies have announced 107,878 layoffs so far this year. The report highlighted artificial intelligence as displacing jobs while making it harder for entry-level engineers to find positions.
A government shutdown, the 15th since 1981, has halted key economic releases, including the September employment report, weekly jobless claims, and trade data. If the shutdown continues, upcoming reports on consumer prices, retail sales, housing starts, and producer inflation will be delayed.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, described the situation as "a stagnating labor market, cost increases and a transformative new technology." He said expected Federal Reserve rate cuts could bring some stability in the final quarter.
The federal government accounts for nearly 300,000 cuts as part of a campaign to shrink the federal workforce. President Donald Trump has tied the downsizing to budget disputes, warning of further cuts in the event of a government shutdown.
Technology companies have announced 107,878 layoffs so far this year. The report highlighted artificial intelligence as displacing jobs while making it harder for entry-level engineers to find positions.
A government shutdown, the 15th since 1981, has halted key economic releases, including the September employment report, weekly jobless claims, and trade data. If the shutdown continues, upcoming reports on consumer prices, retail sales, housing starts, and producer inflation will be delayed.
Nonfarm payroll growth has slowed sharply, averaging 29,000 jobs per month from June to August compared with 82,000 during the same period in 2024. The data comes as employers navigate trade policy changes, immigration enforcement actions, and AI-driven workplace restructuring.
September's lower layoff figure represents a decline from August's 85,885 announced cuts. The year-to-date total of 946,426 layoffs surpasses any full-year figure since 2020, when pandemic-related closures drove workforce reductions.
Challenger, Gray & Christmas tracks publicly announced job cuts and hiring plans from employers across industries. The firm has compiled employment data since 1993.
September's lower layoff figure represents a decline from August's 85,885 announced cuts. The year-to-date total of 946,426 layoffs surpasses any full-year figure since 2020, when pandemic-related closures drove workforce reductions.
Challenger, Gray & Christmas tracks publicly announced job cuts and hiring plans from employers across industries. The firm has compiled employment data since 1993.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
