Employers in the U.S. have reported over 1.1 million layoffs this year, marking the highest number since the onset of the COVID-19 pandemic in 2020, according to a Thursday report from consulting firm Challenger, Gray & Christmas.
In November, there were 71,321 job cuts, a decrease from the 153,000 reported in October. The firm noted that total layoffs for the year have reached 1.17 million, which is a remarkable 54% increase compared to the same period last year. Employers are citing reasons like artificial intelligence, tariffs, and challenging economic conditions.
This marks the sixth occurrence since 1993 where year-to-date layoffs through November have surpassed 1.1 million, with three of those instances happening during a recession.
Andy Challenger, the company’s chief revenue officer, mentioned, “The reduction in layoff plans last month is certainly a positive note.” However, he highlighted that layoffs in November have exceeded 70,000 only twice since 2008: in 2022 and 2008.
The communications sector saw the largest job cuts in November, notably after Verizon announced a reduction of 13,000 positions.
Tech companies are still on a job-cutting spree, with 12,377 layoffs in November alone. Overall, these companies have announced more than 153,000 layoffs this year, marking a 17% increase from last year.
In November, corporate restructuring was cited as the primary reason for the layoffs, with other factors including store closures and a tough economic climate.
In November, artificial intelligence was linked to 6,280 job cuts, and lawmakers have raised alarms about the potential disappearance of 100 million jobs in the U.S. over the next decade, attributing 54,694 of this year’s layoffs to AI advancements.
Additionally, the firm reported 7,908 layoffs, including 2,061 in November, linked to President Trump’s tariffs.
Employers have blamed market and economic conditions for over 245,000 job cuts through November, with inflation standing at 3% and signs of weakness in the labor market. This has negatively impacted hiring forecasts, with 497,151 new hires planned this year—a decline of 35% from last year and the lowest since 2010.
Among those hiring plans, only 372,520 are for seasonal positions, which is the lowest figure Challenger has tracked since 2012.
ADP’s national jobs report revealed that the U.S. private sector lost 32,000 jobs last month, a surprising dip that adds to the overall uncertainty within the labor market.
This report is particularly significant, as it’s one of the few indicators of labor market conditions available to the Federal Reserve before its meeting on December 10, especially after key economic updates were delayed due to the government shutdown.
Workers in September had surprisingly added 119,000 jobs, according to the latest federal data, but the unemployment rate climbed to 4.4%, the highest since October 2021.
The U.S. Bureau of Labor Statistics is set to release the November employment report on December 16, which was initially scheduled for Friday, along with the October nonfarm employment report. However, due to the recent government shutdown, the unemployment data for October may not be disclosed.
