Over 1.1 million layoffs planned this year – highest level since 2020 pandemic

US employers have announced more than 1.1 million layoffs so far this year – the most since the COVID pandemic hit in 2020, consulting firm Challenger, Gray & Christmas said in a report Thursday.

Layoff announcements totaled 71,321 in November, a dip from 153,000 cuts in October, the firm said.

But the latest numbers pushed the year-to-date total to 1.17 million layoffs – up 54% from the same period last year as employers blamed artificial intelligence, tariffs and broader economic conditions during a time of uncertainty.

It’s only the sixth time since 1993 that the year-to-date total number of layoffs by November has topped 1.1 million, and three of those other instances took place during a recession, according to the consultancy.

“Layoff plans fell last month, certainly a positive sign,” Andy Challenger, the firm’s chief revenue officer, said in a statement.

“That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008.”

The telecommunications sector led with the highest level of planned layoffs in November, after Verizon announced 13,000 job cuts.

Tech firms have also continued to slash staff, announcing 12,377 layoffs in November.

These companies have announced more than 153,000 job cuts so far this year – up 17% from last year.

Corporate restructuring was the most cited reason for the November layoffs. Employers also blamed store closings and economic conditions.

Artificial intelligence was cited for 6,280 cuts in November.

The tech was blamed for 54,694 layoffs so far this year as lawmakers have warned it could wipe out 100 million jobs in the US over the next decade.

President Trump’s sweeping tariffs were also cited for 7,908 layoffs this year, including 2,061 in November.

Employers have attributed more than 245,000 job cuts this year through November to market and economic conditions, as inflation remains stubbornly high at 3% and the labor market shows signs of weakness.

Those concerns have also stunted hiring plans, as employers have announced 497,151 planned hires so far this year – down 35% from last year and the lowest total since 2010.

Hiring plans included just 372,520 seasonal workers – the lowest number since Challenger started tracking the figure in 2012.

The ADP’s National Employment Report on Wednesday added to fears around the labor market as it showed US private payrolls lost 32,000 jobs last month – an unexpected drop.

The report is carrying more weight than usual because it’s one of the few glimpses into the state of the labor market that the Fed will get before its Dec. 10 meeting, after the government shutdown delayed crucial economic reports.

According to the most recently available federal data, employers added a surprisingly upbeat 119,000 jobs in September, but the unemployment rate jumped to 4.4% in the same month – the highest level since October 2021.

The Bureau of Labor Statistics is scheduled to release its November jobs data on Dec. 16, after it was originally slated for release on Friday, along with nonfarm payrolls data for October.

October’s unemployment rate, however, will not come out after the record-breaking shutdown prevented the collection of necessary data.