Job market weakening as layoffs exceed one million this year

Concerns over workforce reductions are rising as new figures indicate that layoffs in the United States have surpassed one million this year, according to consulting firm Challenger, Gray & Christmas. This represents the highest level of job losses since the economic turmoil of 2020.

Over 1.17 Million Positions Lost So Far

Payroll processor ADP reported 32,000 private-sector job cuts in November, but Challenger's data showed a far larger number: 71,321 layoffs announced in the same month. With December yet to be counted, total job losses in 2025 have reached 1.17 million.

Andy Challenger, workplace analyst and chief revenue officer at the firm, noted that Novembers figure has only exceeded 70,000 twice since 2008: in 2008 and 2022.

Reasons Behind the Layoffs

Several factors are driving the 2025 workforce reductions:

• Corporate restructuring
• Adoption of artificial intelligence
• Economic and market pressures
• Implementation of new tariffs

Major contributors include Verizon, which announced 13,000 cuts in November. Additionally, tech companies accounted for 12,377 layoffs that month, bringing total technology-sector losses for the year to 54,694, a 17% rise from 2024. Tariffs alone contributed to 2,000 job cuts in November and 8,000 over the year.

Seasonal Hiring Declines

Seasonal hiring, which typically offsets some year-end layoffs, has fallen sharply. Through November, U.S. employers announced 497,000 seasonal hires, 35% fewer than last year. Challenger suggests that December could see an uptick due to strong holiday spending, though these positions may not extend into the new year.

Unemployment Outlook

Federal data collection was disrupted by the government shutdown, delaying the release of the October unemployment rate. Estimates from the Chicago Fed indicate that unemployment has reached 4.4%, the highest in four years. The Bureau of Labor Statistics plans to release November employment figures on December 16.

Author: Natalie Monroe