Outlook Business Desk
Job cuts in the US soared to their highest level in February since the Great Recession in 2009, according to a new report by staffing firm Challenger, Gray & Christmas.US employers cut 172,017 jobs in February, the highest for the month since 2009 (186,350 cuts). It is also the highest monthly total since July 2020 (262,649 cuts).
The US federal government led all sectors in job cuts in February, with 62,242 announced layoffs—a 41,311% increase from the same period in 2024. The "DOGE Impact" was cited as the main reason, accounting for 63,583 layoffs across the country as the Elon Musk-led team cut contractors and funding for non-profit groups.
The US employers have announced 221,812 job cuts this year, marking a 33% increase from 166,945 cuts in the same period of 2024. “Private companies announced plans to shed thousands of jobs last month, particularly in Retail and Technology," said Andrew Challenger, Senior Vice President and workplace expert for Challenger, Gray & Christmas.
According to the Bureau of Labor Statistics, the U.S. unemployment rate stood at 4.1% for the month, after falling from 4.1% to 4.0% between December and January.
Challenger report noted that Trump administration wants to cut even more workers, but an order to fire the roughly 200,000 probationary employees was blocked by a federal judge. It remains to be seen how many more workers will lose their Federal government roles.
Retailers cut 38,956 jobs in February, while the Technology sector announced 14,554 cuts, bringing its year-to-date total to 22,042 a 22% drop from 2024. Job cuts in Services (13,804) and Consumer Products (12,947) remained steady or grew, whereas Media (1,557) and News (324) saw significant declines from last year.
Layoffs rose 109% in the East and 61% in the Midwest of the US, mainly due to federal cuts. The West (-10%) and South (-40.1%) saw fewer job losses. District of Columbia (61,795 cuts) and Ohio (22,592 cuts) had the biggest losses, while Georgia (-98%) and Wisconsin (-77%) saw major drops.
The report says that US companies’ hiring plans also surged in February to 34,580. So far this year, companies plan to hire 40,669 workers, an increase of 159% from the same period last year. This is the highest number for February since 2022, when companies announced 215,127 new hires.