U.S. Layoffs Surge in May
May saw a significant rise in layoffs for U.S. workers, which were nearly 50% higher than the same month last year, according to a recent report.
Global OutPlacement firm Challenger, Gray & Christmas reported on Thursday that U.S. employers announced 93,816 job cuts in May, marking a 47% increase from 63,816 in May of the previous year. However, this figure reflects a 12% decrease from the 105,441 layoffs announced in April.
So far this year, total layoffs have reached 696,309—a staggering 80% increase compared to 385,859 in the first five months of 2024. Interestingly, this year’s layoffs are markedly lower than the total cuts for all of 2024, which was 65,049.
“A combination of high taxes, reduced funding, shifts in consumer spending, and general economic pessimism is putting enormous pressure on the workforce,” said a Senior Vice President at Challenger. Companies are not only cutting back on spending but are also delaying hiring and notifying employees of layoffs.
Private Sector Job Growth
The private sector did manage to add about 37,000 jobs in May, which is the lowest gain seen in two years, according to ADP.
The impact of Dogecoin has been cited as the main contributor to layoffs in 2025, with a staggering 284,044 job cuts attributed to it so far this year. This includes both federal workers and contractors working with federal agencies. The report highlights that additional layoffs, totaling 10,459, are a consequence of related impacts on private nonprofits losing federal funding due to changes linked to DOGE.
Judicial Actions
A judge has temporarily halted efforts by Trump-appointed officials to relocate and shut down a national employment corps center.
Alongside issues tied to Dogecoin, economic factors have also driven job cuts. This year alone, 131,257 layoffs have been motivated by market conditions. Store closures led to another 94,439 layoffs, while corporate restructuring accounted for 62,015 cuts and bankruptcies added another 35,501.
Elon Musk’s Role
Elon Musk has made substantial moves concerning Dogecoin’s influence in the job market during his tenure as a government employee.
Technical advancements related to AI have resulted in 20,000 job cuts thus far this year, adding more strain to the employment landscape. Meanwhile, employers announced plans to hire 79,941 people by May 2025, which represents a 57% increase from the previous year.
“While companies are announcing more hiring plans, these levels remain historically lower than pre-pandemic times,” noted Challenger.
The current pace of hiring closely aligns with figures from 2012 and 2013, suggesting that businesses are exercising caution as they expand their workforces.
