--- title: "US Layoffs Hit Highest Level Since 2020 | Metaintro" canonical: "https://www.metaintro.com/blog/us-layoffs-highest-2020-labor-market-950000-jobs" language: "en" author: "laceykaelani" published: "2025-10-08T11:30:00.000Z" modified: "2026-09-28T18:15:08.313Z" --- [Back to Blog](/blog) [Layoffs](/blog/tag/layoffs) # US Layoffs Hit Highest Level Since 2020 Nearly 950,000 US workers lost jobs through September 2025, the highest total since pandemic. Companies slash hiring plans by 58% as automation and economic pressures mount. [![Lacey Kaelani](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/2934b90b-ca20-4439-bc56-71b4f5733545_1766029465094.png)Lacey Kaelani @laceykaelani](/blog/author/laceykaelani) [October 8, 2025](/blog/archive/2025/10)5 min read ![US Layoffs Hit Highest Level Since 2020](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/manstandinginoffice.png) [https://x.com/intent/tweet?text=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs](https://x.com/intent/tweet?text=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs&title=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs&title=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020)[mailto:?subject=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs](mailto:?subject=US%20Layoffs%20Hit%20Highest%20Level%20Since%202020&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fus-layoffs-highest-2020-labor-market-950000-jobs) The American labor market is experiencing its worst year for job cuts since the early pandemic chaos of 2020. Employers across the US announced 946,426 layoffs through September, according to outplacement firm [Challenger, Gray & Christmas](https://www.challengergray.com/). That's a 55% surge compared to the 609,242 cuts during the same period last year. The firm forecasts total job cuts could surpass 1 million before 2025 ends, making it one of the five worst years for layoffs in the 36 years Challenger has tracked this data. While nowhere near 2020's devastating 2 million layoffs through September when the pandemic shuttered businesses nationwide, the current pace represents a troubling acceleration in workforce reductions. "Previous periods with this many job cuts occurred either during recessions or, as was the case in 2005 and 2006, during the first wave of automations that cost jobs in manufacturing and technology," said Andy Challenger, senior vice president at [Challenger, Gray & Christmas](https://www.challengergray.com/). ## Hiring Plans Collapse The picture gets worse when you look at hiring intentions. Companies now expect to bring on 58% fewer workers for the remainder of 2025 compared to their projections from a year ago. That's not just a slowdown. It's a near-collapse in hiring confidence. Planned hiring totals just 204,939 jobs year-to-date, the lowest level since 2009 when the economy was crawling out of the financial crisis. The third quarter saw particularly grim numbers, with 202,118 planned layoffs marking the highest Q3 total since 2020's 497,215 cuts. The labor market has clearly stalled. Employers aren't just cutting positions, they're fundamentally rethinking their workforce needs as automation accelerates and economic uncertainty persists. ## Technology and Automation Strike Again The layoff surge isn't happening in a vacuum. [Challenger, Gray & Christmas](https://www.challengergray.com/) data shows that technological updates, including automation and AI implementation, have directly led to 20,219 job cuts in 2025. Another 17,375 were explicitly attributed to artificial intelligence, with 7,000 of those announced in September alone. That's 37,594 jobs lost specifically to technology displacement, accounting for roughly 4% of all layoffs. And those are just the cuts companies openly blamed on AI and automation. The real number is likely much higher. Government sector cuts have dominated the headlines, particularly federal workforce reductions. Washington DC saw cuts jump from 34,788 last year to 298,901 this year, a staggering 759% increase. The East region overall experienced a 193% surge in job cuts, rising from 166,060 in 2024 to 487,049 in 2025. Retail continues bleeding jobs, with 83,656 cuts announced through August, up 242% from the 24,489 during the same period last year. Retailers are getting hammered by tariffs, inflation, and economic uncertainty causing bankruptcies and store closures. Technology companies announced 102,239 job cuts this year, though that's actually down 3% from the 105,426 cuts during the same period in 2024. ## September Offers Small Glimmer of Hope There's one potentially positive sign buried in the data. September's 54,064 job cuts represented a 37% drop from August's nearly 86,000 cuts and was 26% lower than September 2024. This marks only the third time this year that job cuts came in lower than the corresponding month one year earlier. It could signal that companies have completed the worst of their workforce reductions. But experts remain cautious about declaring victory. The economic environment continues to shift, and many firms are still holding off on hiring or preparing for additional cuts. ## Fed Watches Closely as Shutdown Adds Uncertainty The [Federal Reserve](https://www.federalreserve.gov/) is closely monitoring labor market weakness. Fed Chair Jerome Powell cited headwinds facing workers as the primary reason the central bank lowered its benchmark interest rate by 0.25 percentage points last month. The Fed is penciling in two additional rate cuts for the remainder of 2025. Lower borrowing costs could help stabilize the job market by giving businesses more flexibility to expand and hire. But other factors, including the government shutdown that began this week, are adding new layers of uncertainty. The shutdown delayed the [Bureau of Labor Statistics](https://www.bls.gov/) monthly jobs report, which was scheduled for release on October 3. Economists were forecasting employers added 50,000 jobs in September, but that data remains unavailable as roughly 750,000 federal workers sit furloughed. In the absence of official government data, alternative measures like the [ADP](https://www.adp.com/) report showing private payrolls declined by 32,000 in September are drawing heightened attention from economists and policymakers. "Right now, we're dealing with a stagnating labor market, cost increases and a transformative new technology," Challenger said. "With rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring." The question is whether rate cuts and potential economic stabilization can outweigh the structural forces reshaping the American workforce through automation, AI adoption, and fundamental business model changes. Looking for a new job? 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