Please consider the Challenger Report for September 2025.

“It’s very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series. 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 and labor expert for Challenger, Gray & Christmas. “Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. 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,”

“Tech firms are undergoing incredible disruption with AI that is not only costing jobs, but also making it difficult to land positions, particularly for entry-level engineers. Tech leaders have stressed that AI is changing the nature of work, and more companies are requiring their teams be trained on it,” noted Challenger.

“Now is when we typically see Retailers bulk up for the holidays, but so far, plans have been slow to come, reflecting caution. With lower consumer confidence and tariff pressures ahead, we predict the hiring season will be muted,” said Challenger.

Challenger Job Cut Details

• In the third quarter, planned layoffs by U.S. employers totaled 202,118, the highest Q3 total since 2020, when 497,215 job cuts were recorded. It is up 16% from the 174,597 planned cuts announced in the third quarter of 2024, and down 18% from the 247,256 recorded in the previous quarter.
• So far this year, companies have announced 946,426 job cuts, the highest YTD since 2020 when 2,082,262 were announced. It is up 55% from the 609,242 job cuts announced through the first three quarters of last year and is up 24% from the 2024 full year total of 761,358.
• The 2025 year-to-date total is the fifth highest in the 36 years Challenger has reported.

Industries Impacted the Most

• Government: The Government sector has announced 299,755 planned job cuts this year, of which 289,363 were Federal workers impacted by DOGE. In September, Challenger tracked 5,656 rescinded layoffs and attempts to rehire previously laid off workers at eight agencies. These are counted as hiring plans and reported in the firm’s hiring figures
• Technology: Through September, Technology companies have announced 107,878 job cuts, including 5,639 last month. This is an 8% decline from the 116,856 job cut plans from Tech companies during the same period last year.
• Retail: Retailers have announced 86,233 job cuts through September, up 203% from the 28,440 cuts announced during the same period last year.
• Services: Service industries have cut 61,590 jobs through September. This is up 64 percent from the same period last year.
• Financial: Finance industries have cut 46,386 jobs through September. This is up 28 percent from the same period last year.

Anemic Hiring Plans

So far this year, employers plan to add 204,939 jobs, down 58% from the 483,590 announced hiring plans through September 2024. Most of this drop is due to a low number of seasonal hiring announcements.

Last month, Challenger tracked 100,800 seasonal hiring plans, down from 401,850 announced by the beginning of October 2024.

September marks the lowest year-to-date hiring plans since 2009, when 169,385 new hires were recorded.

Challenger Announced Hiring Plans

(Click on image to enlarge)

September Hiring Patterns

• 2025: 117,313
• 2024: 403,893
• 2023: 590,353
• 2022: 380,014
• 2021: 939,790
• 2020: 929,860
• 2019: 459,689

Excluding Government

Total cuts through September are 946,426 of which 299,755 are government jobs.

That means there are 646,671 non-government cuts through the third quarter.

That exceeds the annual totals for years 2010 through 2019, also years 2021, and 2022.

Full year totals excluding government are likely to exceed every year from 2010 through 2024 except 2020.

Final Thoughts

These are dismal numbers.

It’s not just the cuts that matter but also hiring plans. Challenger shows a stunning drop in seasonal trends noted by September hiring plans.

If these hiring plans hold, we are going to have huge negative seasonal adjustment by the BLS in the fourth quarter.

I expect all hell to break loose in the labor markets in the fourth quarter.

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October 9, 2025: Five New Polls Show 70% of Americans Are Pessimistic on the Economy

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October 5, 2025: Trump Adopts Chicago Cubs’ Perpetual Message, “Wait Till Next Year”

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Realistically, this is the expected result from inane tariffs. Close to half of all imports are items used in manufacturing, not end consumer items.

Small businesses and end consumers are getting killed by Trump’s tariffs.

But just wait till next year. That’s when miracles happen.

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