rThe wave of layoffs sweeping across the United States intensified in October, with more than 153,000 positions eliminated, the highest total for the month in 22 years, according to Challenger, Gray & Christmas.
The consultancy, cited by CBS News, reported that employers have now disclosed almost 1.1 million job cuts since January.
No year has seen a higher tally through October since 2020, when the pandemic forced shutdowns and sent unemployment soaring.
Andy Challenger, workplace expert and chief revenue officer at the firm, said the surge reflects a turning point in how employers are approaching staffing.
"October's pace of job cutting was much higher than average for the month," he said, noting that businesses that previously held off on reductions now lean on AI to replace human workers.
Challenger added, "Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes.
Evidence of a cooling labour market has been visible across several indicators. The payroll processor ADP reported weaker hiring among private employers this week, suggesting companies are slowing recruitment significantly compared to earlier in the year.
The shift in hiring conditions was also acknowledged by policymakers. Federal Reserve Chair Jerome Powell cited concerns around reduced hiring when announcing interest rate cuts in both September and October.
The usual government data that tracks the state of the labour market remains delayed. The Department of Labor has been unable to issue its monthly employment report since October 1, after the government shutdown halted the release of September’s figures and is now expected to push back the October update as well.
For employees looking for new roles, the environment is becoming tougher. "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market," Challenger said, as cited by CBS News.
Forecasts suggest the slowdown may last. The National Association for Business Economics predicted last month that the unemployment rate, 4.3% in August, could rise to 4.5% in 2026.
The consultancy, cited by CBS News, reported that employers have now disclosed almost 1.1 million job cuts since January.
No year has seen a higher tally through October since 2020, when the pandemic forced shutdowns and sent unemployment soaring.
Andy Challenger, workplace expert and chief revenue officer at the firm, said the surge reflects a turning point in how employers are approaching staffing.
"October's pace of job cutting was much higher than average for the month," he said, noting that businesses that previously held off on reductions now lean on AI to replace human workers.
Challenger added, "Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes.
Evidence of a cooling labour market has been visible across several indicators. The payroll processor ADP reported weaker hiring among private employers this week, suggesting companies are slowing recruitment significantly compared to earlier in the year.
The shift in hiring conditions was also acknowledged by policymakers. Federal Reserve Chair Jerome Powell cited concerns around reduced hiring when announcing interest rate cuts in both September and October.
The usual government data that tracks the state of the labour market remains delayed. The Department of Labor has been unable to issue its monthly employment report since October 1, after the government shutdown halted the release of September’s figures and is now expected to push back the October update as well.
For employees looking for new roles, the environment is becoming tougher. "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market," Challenger said, as cited by CBS News.
Forecasts suggest the slowdown may last. The National Association for Business Economics predicted last month that the unemployment rate, 4.3% in August, could rise to 4.5% in 2026.
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