U.S. employers cut nearly 950,000 jobs through September 2025, the highest number of layoffs since 2020, according to Challenger, Gray & Christmas. Cuts could surpass 1 million this year. While still far below the 2 million layoffs in the same period of 2020, the rise highlights a weakening labor market. Hiring plans have also dropped sharply, with companies expecting to bring on 58% fewer workers compared to last year.
The government shutdown could lead to additional job losses, and data from ADP shows private payrolls fell by 32,000 in September. However, layoffs slowed in September to about 54,000, down 37% from August.
The Federal Reserve cut interest rates in September and expects two more cuts this year, aiming to support businesses and consumers. Lower borrowing costs may help stabilize hiring, but ongoing challenges such as higher costs and new technology continue to pressure employers.
Economists expect Friday’s government jobs report to be delayed due to the shutdown, with private estimates forecasting only about 50,000 jobs added last month.