What's Happening?
In November 2025, U.S. employers announced 71,321 job cuts, marking a 54% decrease from October's figures, according to Challenger, Gray & Christmas. Despite this reduction, layoffs were still 24% higher than the previous year, indicating ongoing volatility
in the job market. The telecommunications and technology sectors experienced the most significant job cuts, with Verizon and Amazon contributing to the numbers. The report also highlighted concerns over 'forever layoffs,' where smaller, regular layoffs create job insecurity among workers. Additionally, planned hiring for the year has decreased by 35% compared to 2024, reaching the lowest level since 2010.
Why It's Important?
The reduction in job cuts is a positive sign for the U.S. labor market, yet the persistent high levels of layoffs compared to last year reflect underlying economic challenges. Factors such as market conditions, tariffs, and company restructuring are driving these job cuts. The concept of 'forever layoffs' poses a threat to employee morale and workplace culture, potentially impacting productivity and retention. The decrease in planned hiring further underscores the cautious approach employers are taking amid economic uncertainties. These trends could have broader implications for consumer spending and economic growth, as job security remains a critical factor in economic stability.
What's Next?
The U.S. labor market will continue to be influenced by macroeconomic factors, including tariffs and market conditions. The upcoming release of October and November payroll data by the Bureau of Labor Statistics will provide further insights into employment trends. Employers may need to address the impact of 'forever layoffs' on employee morale and explore strategies to enhance job security. Policymakers and economic stakeholders will likely monitor these developments closely to assess the need for interventions that support job growth and economic stability. The ongoing adjustments in hiring and layoffs will be pivotal in shaping the labor market landscape in 2026.
