New data shows layoffs in the US have exceeded 1 million this year

American companies are reducing their workforce at an accelerated pace. This year, layoffs have surpassed one million, marking the highest number of job cuts since 2020, according to recent figures from consulting firm Challenger, Gray & Christmas.

Last month alone saw the largest monthly job losses since early 2023, as reported by ADP. While major corporations have been trimming staff in response to tariffs, advances in AI, and overexpansion during the pandemic, small businesses are now leading the reduction in payrolls, Bloomberg highlighted.

The slowing labor market strengthens expectations that the US Federal Reserve may lower interest rates next week, though persistent inflation remains a complicating factor.

Chart depicts monthly US employment reductions J.D. Capelouto

Author: Ethan Caldwell