The US labor market showed fresh signs of strain in September, with hiring plans plunging to their weakest level since the Great Recession and job cuts piling up at the fastest pace in five years.
According to Challenger, Gray & Christmas, employers have announced plans to add just 204,939 jobs year-to-date, down sharply from 483,590 at this point last year. It marks the lowest total since 2009, when companies were still reeling from the financial crisis.
At the same time, layoff announcements hit 946,426 so far in 2025 — already the highest since 2020 — and could surpass 1 million by year-end. September alone saw 54,064 job cuts, down from August but still reflecting persistent weakness across key sectors.
Key Drivers
- Government downsizing: Nearly 300,000 layoffs were tied to federal cutbacks.
- Technology sector: More than 107,000 cuts, including 17,000 explicitly attributed to AI adoption.
- Retail: Layoffs tripled to 86,000, as seasonal hiring slowed dramatically.
- Seasonal hiring slump: Employers announced only 100,800 holiday season jobs versus 401,850 a year ago.
Labor experts warn that the surge in cuts mirrors patterns seen in past recessions or in periods of disruptive technological change. “It’s very likely job cut plans are going to surpass a million for the first time since 2020,” said Andy Challenger, senior vice president at the firm.
With the Bureau of Labor Statistics’ September jobs report delayed by the government shutdown, markets are leaning heavily on private data from Challenger and ADP to gauge the health of the economy.
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