Largest U.S. layoffs since the pandemic spark economic concerns
In February, American employers announced the largest wave of layoffs since the start of the pandemic. Over the course of the month, a reduction of more than 172,000 jobs was announced, marking a 103% increase compared to the previous year. The largest cuts affected the government sector as a result of actions by Donald Trump's administration, Bloomberg reports.
February 2025 saw the United States experience the largest wave of layoffs since the pandemic. According to data from the consulting firm Challenger, Gray & Christmas, American employers announced a reduction of 172,000 jobs, which is the highest level since July 2020 and the largest number of February layoffs since 2009.
The most significant cuts affected the federal government, which announced the elimination of over 62,000 jobs. This resulted from actions by the Department of Government Efficiency (DOGE), led by Elon Musk. DOGE was created by Donald Trump's administration to reduce employment in federal institutions.
It's not only the government sector dealing with job cuts. The crisis has also impacted the retail and technology industries; several large companies, including HP Inc. and Walt Disney Co., have announced layoffs.
Concerns about rising unemployment
As Bloomberg reports, such drastic job cuts are causing concern among economists. Andrew Challenger, a labour market expert, points out that the accumulation of layoffs in the government, technology, and retail sectors, combined with economic uncertainty, could lead to increased unemployment in 2025.
With the impact of the Department of Government Efficiency [DOGE] actions, as well as cancelled Government contracts, fear of trade wars, and bankruptcies, job cuts soared in February, Challenger assessed.
Despite the sharp increase in layoffs, data also indicates the development of new jobs. In February, companies announced the hiring of over 34,000 people, which is the highest number for this month since 2022. Industries such as manufacturing and green energy are still seeking new workers, which may help mitigate the impact of the wave of layoffs on the job market.
