An article in Forbes from mid-August notes that in 2025, Job Cuts Have Already Surpassed All Of 2024—DOGE, AI, And Tariffs Are the Biggest Causes.
According to a career services firm, Challenger, Gray & Christmas, “private and public employers cut 62,000 jobs in July, an almost 30% increase from the previous month and a 140% spike over the same month last year.
“More than 806,000 jobs have been cut to date in 2025, already above the 761,358 eliminated in all of 2024.
“The Challenger report says so-called ‘DOGE impact’ is the leading reason for job cut announcements so far in 2025… ” Check out layoffs. FYI, which notes that nearly a quarter of the jobs are in health and Human Services.
“In addition to the direct cuts to the federal workforce, DOGE cuts to grant funding have also led to 17,826 cuts in the non-profit sector this year, up 413% from this time in 2024, Challenger said. Non-profit organizations have cited mounting challenges from reductions in federal funding, rising operational costs, and persistent economic uncertainty.”
Tech
“Technology is the leading private sector in job cuts, with 89,251 eliminated in 2025 so far. Challenger says the advancement of artificial intelligence and ongoing uncertainty surrounding work visas have contributed to workforce reductions, which are up 36% in the sector over the same time period last year.
“The retail and automotive sectors have seen an increase in layoffs as the result of global tariffs implemented… Retail announced 80,487 job cuts in July, up 249% through this time in 2024, citing tariffs, inflation, and ongoing economic uncertainty. “
This video touches on some of these numbers, including the regional impact variations.
An example from Daily Kos and Common Dreams: John Deere has axed more than 200 employees to cut higher costs caused by tariffs. “As stated on our most recent earnings call, the struggling ag economy continues to impact orders for John Deere equipment,” the company said in a statement obtained by Illinois Public Media.
But what does it mean?
Callie Cox, the chief market strategist at Ritholtz Wealth Management, worries in Business Insider about an under-the-radar number that raises a huge red flag for America’s job market.
“Wall Street bigwigs, major investors, stock analysts, and economists [all] agree on… the fundamental importance of the job market….
“This is why many economists and analysts focus on the unemployment rate… The headline jobless rate is 4.2%, up from record lows set in 2023, but hardly at a catastrophic level…
“Still, there is one number… that represents a serious cause for concern. The official US labor force, which measures the number of working-age Americans actively working or looking for work, is shrinking at a rate normally seen during the depths of economic crises. The pool of available workers has stalled for three straight months, the first such streak since 2011…
“The reasons for this shrinkage point to worrying shifts in America’s job market, and the consequences could be perilous. Over time, a smaller labor force presents pernicious challenges: lower growth, tax revenue, and productivity…
“The immigration crackdown and a rough hiring environment are only part of the story. Other long-term trends could be depressing the number of people willing to jump into the workforce. Labor force participation among women has yet to recover from pre-COVID levels, given steep childcare costs, return-to-office mandates, and the cost of childcare. The participation rate among teenagers 16 to 19 years old has also plummeted over the past few months, likely a product of fewer entry-level opportunities.”
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