:max_bytes(150000):strip_icc()/GettyImages-2243391849-4ca7f551384442a1990c1023b394f313.jpg "U.S. Layoffs Hit Highest October Level Since 2003")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2243391849-4ca7f551384442a1990c1023b394f313.jpg)
Key Takeaways
- U.S. employers announced the most job cuts in October than in any October since 2003.
- The report by private consulting firm Challenger, Gray, & Christmas is more important because the ongoing shutdown has delayed official government reports.
The low-hiring, low-firing job market suddenly has a lot of firing.
U.S. employers announced 153,074 job cuts in October, the most for that month since 2003, consulting firm Challenger, Gray & Christmas said Thursday. That was more than double the 54,064 layoff announcements in September, and up 175% compared to October 2024.
The layoff surge is a red flag about the health of the job market, which has been slowing down by just about any available measure. The most recent data from the Bureau of Labor Statistics showed job growth decreased sharply over the summer as tariffs-related uncertainty, federal workforce cutbacks, President Donald Trump’s crackdown on immigration, and the adoption of artificial intelligence all took their toll.
What This Means For The Economy
October’s layoff surge could be a turning point for a job market that has deteriorated over the course of the year. Until now, many employers have cut back on hiring but been reluctant to lay people off in significant numbers.
Reports by companies like Challenger usually take a back seat to official data from the Bureau of Labor Statistics because the BLS data is more comprehensive, based on massive surveys, and is considered the “gold standard” for reliability by economists. But with the government and all its statistical agencies shut down since Oct. 1, investors, business leaders, and officials at the Federal Reserve must rely on alternate data sources to assess the health of the economy.
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” Andy Challenger, workplace expert and chief revenue officer for Challenger, said in a press release. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
The layoff announcements in October came from the country’s largest employers. Amazon, for instance, said it would lay off 14,000 corporate workers because AI made their jobs unnecessary.
