Report: US Layoffs Reach Highest Levels In 5 Years
Job layoffs have reached their highest level since the pandemic, proving that the U.S. economy is in a “Trump Slump.”
According to CBS News, outplacement firm Challenger, Gray & Christmas revealed that 950,000 jobs have been cut by employers this year. The firm projects that layoffs could ultimately surpass the one million mark by the end of the year. While alarmingly high, the number is still substantially lower than the two million layoffs during the COVID-19 pandemic in 2020.
“Previous periods with this many job cuts occurred either during recessions or, as was the case in 2005 and 2006, during the first wave of automations that cost jobs in manufacturing and technology,” said Andy Challenger, senior vice president and labor expert for Challenger, Gray & Christmas, in a statement.
Data from the Bureau of Labor Statistics shows the number of 2025 layoffs isn’t far off from the 1.5 million layoffs that occurred during the Great Recession in 2008. The layoffs come as employers drastically reduce their hiring projections for the year by 58% compared to last year.
“Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. With rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring,” Challenger said.
The moves by the Trump administration since taking office earlier this year have only increased the number of layoffs in the federal government. This first came in the form of Elon Musk’s bizarre DOGE endeavor that indiscriminately fired thousands of federal workers. Some of those former employees have been asked to return to their jobs due to their importance, but that process hasn’t gone smoothly either.
The DOGE cuts also saw 1,300 employees laid off from the Department of Education. President Donald Trump has used the ongoing government shutdown to threaten even more layoffs in the federal government. Crazy how America thought a game show host whose catchphrase was “you’re fired” was actually going to improve job prospects.
If you’ve spent any time looking for a job over the last couple of years, you’re well aware it’s a crap show. In addition to people getting laid off from their jobs, it’s becoming increasingly harder to get a new job. A recent study revealed that an estimated one in four job postings are “ghost jobs,” which are postings for jobs that don’t exist or employers don’t actually intend to fill.
I cannot tell you how annoying it is to apply for a job you’re more than qualified for, get an interview, get told the job was filled by someone whose qualifications matched what they were looking for, only to see the same job reposted the next day. I can tell you firsthand, there are plenty of people willing to work, but there are just not enough companies serious about hiring.
As the year has gone on, more and more data have painted a particularly dire picture of the American economy. Unemployment for Black women remains stubbornly high, and more workers across Gen X, millennials, and Gen Z are reporting living paycheck to paycheck. The cost of living was already taking up a higher percentage of workers’ earnings, and the Trump administration’s erratic tariff policy has only increased those costs.
If there’s any upside here, it’s that layoffs seem to be slowing down. September saw an estimated 54,000 layoffs, down 37% from the estimated 86,000 layoffs in August.
Yay for that, I guess?
SEE ALSO:
Unemployment Rate Remained Stubbornly High For Black Women In June
Are DOGE’s Massive Layoffs Hurting Black Workers?
Report: US Layoffs Reach Highest Levels In 5 Years was originally published on newsone.com
