US sees largest job cuts since 2020 as federal layoffs surge
In February, American employers announced the largest wave of redundancies 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% rise year on year. The largest cuts affected the government sector as a result of actions by Donald Trump's administration, reports Bloomberg.
February 2025 saw the United States face the largest wave of redundancies 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 redundancies since 2009.
The biggest 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.
Not only is the government sector struggling with job cuts. The crisis has also affected retail and the technology industry—a few large companies, including HP Inc. and Walt Disney Co., have announced redundancy plans.
Concerns about rising unemployment
Bloomberg reports that such drastic job cuts are causing concern among economists. Andrew Challenger, a labour market expert, notes that the accumulation of redundancies 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 – assessed Challenger.
Despite the sharp increase in redundancies, data also indicate the creation of new jobs. In February, companies announced the hiring of over 34,000 people, which is the best result for this month since 2022. Industries such as manufacturing and green energy are still seeking new workers, which may mitigate the impact of the wave of redundancies on the job market.
