US job cuts decrease by 54% in November, but workers still concerned about 'permanent layoffs'

Following an unusually high number of layoffs in October, U.S. companies announced fewer job reductions in November. However, the total was still 24% higher than the same month last year and remains the highest since the COVID-19 pandemic, highlighting ongoing instability in the labor market amid economic uncertainties.

Consulting firm Challenger, Gray & Christmas reported 71,321 layoffs in November, a 53% decline from October's 153,074. Compared with November 2024, when 57,727 cuts were reported, this represents a 24% increase. The November figure marks the largest for the month since 2022, when 76,835 layoffs occurred, continuing a pattern where layoffs have exceeded the previous year's monthly totals eight times in 2025.

"The decline in layoff plans is encouraging," said Andy Challenger, workplace analyst and chief revenue officer of the consulting firm. "Still, surpassing 70,000 job cuts in November has only happened twice since 2008: during the Great Resignation and the Great Recession."

So far this year, employers have announced 1,170,821 job cuts, up 54% from the same period in 2024, reaching the highest year-to-date total since 2020, when 2,227,725 layoffs were reported during the pandemic's onset.

ADPs National Employment Report, released Dec. 3, found private companies cut 32,000 jobs in November, after adding 47,000 in October. "Hiring has been uneven as businesses navigate cautious consumers and economic uncertainty," said ADP Chief Economist Nela Richardson. The slowdown was most pronounced among small businesses.

Government data has not yet reflected a significant rise in layoffs. Initial claims for state unemployment benefits fell by 27,000 to 191,000 for the week ending Nov. 29, the Labor Department reported. Meanwhile, the Bureau of Labor Statistics noted 119,000 jobs added in September, with the unemployment rate ticking up slightly to 4.4%.

Market pressures, corporate restructuring, and tariffs drove layoffs, with 2,061 cuts attributed to tariffs in November and 7,908 year-to-date. Telecommunications and technology sectors led layoffs, totaling 15,139 and 12,377 respectively, fueled by Verizon's announcement of over 13,000 cuts and Amazon's corporate reductions.

Retail and non-profits reported the largest year-over-year increases, with retail layoffs up 139% to 91,954, and non-profits up 409% to 28,696. Cuts from federal efficiency initiatives accounted for the largest single source of layoffs so far in 2025, with 293,753 planned reductions.

Glassdoors Worklife Trends 2026 report warns that frequent, smaller layoffs, known as "forever layoffs," are affecting employee morale and engagement. Mentions of job insecurity on the platform have surpassed levels seen in March 2020. "Persistent, incremental layoffs can undermine workplace culture as employees absorb extra work and worry about future cuts," the report said.

Year-to-date hiring plans remain weak, with 497,151 positions planned, down 35% from 761,954 at the same point in 2024, marking the lowest total since 2010.

In summary, while November's job cuts dropped from October, the overall trend of elevated layoffs and cautious hiring continues to weigh on U.S. workers and highlights ongoing labor market volatility.

Author: Sophia Brooks