In August, U.S. companies preplanned almost 86,000 job cuts, according to outplacement firm Challenger, Gray & Christmas. That was a huge 39% jump from the prior month, said the report from an outplacement company. The data shows that pharmaceuticals and finance were the most heavily impacted sectors, an indication of greater economic impacts seen in those industries. Job cuts are rocketing, and net job creation has come to a near standstill. This trend, in light of the labor market’s continued deterioration, is troubling.
As a result, August’s job cuts now stand as the largest on record for that month since 2020. This marks the sixth occasion this year where total job cuts exceeded those of the corresponding month from the previous year. The U.S. labor market continued to be healthy, adding an average of nearly 35,000 jobs per month. This jump happened during the three-month period that concluded in July. This number represents a dramatic slowdown from the ~196,000 jobs created on average over the previous three-month period.
A recent government report on gross domestic product revealed an average annualized growth of just 1.2% for the first half of 2025, significantly lower than the 2.5% growth experienced last year. Given these numbers, it is important to note that the unemployment rate for the U.S. is still very low at 4.2%. As of July, the unemployment rate for Black workers has increased, showcasing the persistent inequities that still reside in the labor market.
This report on job cuts comes just one day before the now much anticipated release of a new government jobs report. This would be consistent with expectations of 75,000 jobs added in August according to this report. If this report comes in as hoped, it would be an improvement from July’s 73,000 jobs added.
Andrew Challenger, an expert in workforce trends, noted, “After the impact of DOGE on the Federal Government, employers are citing economic and market factors as the driver of layoffs.” This statement highlights the complicated relationship between our economic circumstances and job figures.
President Donald Trump recently appointed Commissioner Erika McEntarfer to be fired by BLS. He moved quickly to nominate E.J. Antoni to replace her. McEntarfer expressed her sentiments regarding her tenure, stating, “It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy.”
William Beach, who as the former Commissioner of Labor Statistics at BLS under Trump, was critical of Trump’s decision to fire McEntarfer. He blasted the decision as “outrageous.” He remarked, “The totally groundless firing of Dr. Erika McEntarfer… sets a dangerous precedent and undermines the statistical mission of the Bureau.”
Trump stood by his actions, saying that removing the right employment data is necessary to make smart economic decisions. He stated, “We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified.”
