Layoff concerns are growing as new data shows job cuts surpassed 1 million this year, according to consulting firm Challenger, Gray & Christmas. It marks the highest level of layoffs in the U.S. since the pandemic battered the economy in 2020. And while nearly half a million Americans have picked up seasonal jobs, researchers note that season hiring is down 35% from last year.
More than 1.17 million layoffs so far
On the same day, payroll processor ADP reported that private-sector employers cut 32,000 jobs in November, Challenger revealed far larger cuts: 71,321 layoffs announced last month alone. That brings total U.S. job losses this year to 1.17 million, with December still to come.
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“Job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008,” said Andy Challenger, workplace expert and chief revenue officer for the firm.
Why companies are cutting jobs
Challenger cites several forces driving layoffs in 2025:
- Corporate restructuring.
- Artificial intelligence adoption.
- Economic and market conditions.
- New tariffs.
One standout contributor in November: Verizon, which announced 13,000 job cuts. In addition, CNBC reports that tech companies posted 12,377 layoffs last month, pushing total tech-sector losses to 54,694 for 2025 – a 17% increase from last year.
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The 1.17 million layoffs represent a 54% increase in job cuts in the U.S. compared to the same 11-month period in 2024.
The report also found tariffs were responsible for 2,000 job cuts in November and 8,000 for the year.
Seasonal hiring slumps
Seasonal hiring, which typically softens the blow of year-end layoffs, is also down sharply. U.S. employers have announced 497,000 seasonal hires through November – 35% fewer than last year.
Challenger says a December uptick is possible, especially after strong Black Friday and Thanksgiving weekend spending. But he warns those jobs may be short-lived: “It’s unclear, however, if those positions will last into the New Year.”
Unemployment picture remains murky
Because the federal government shutdown halted data collection, the Bureau of Labor Statistics (BLS) did not release the October unemployment rate.
However, the Chicago Fed estimates unemployment climbed to 4.4%, the highest level in four years, according to Reuters.
The BLS will release the November employment report on Dec. 16.
