Americans face massive job cuts amid gov't and tech layoffs
In February, American employers announced the largest wave of layoffs since the start of the pandemic. Over the course of the month, more than 172,000 jobs were cut, marking a 103% increase compared to the previous year. The largest cuts affected the government sector due to actions by Donald Trump's administration, Bloomberg reports.
February 2025 saw the United States experiencing the largest wave of layoffs 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 layoffs in February since 2009.
The most significant cuts occurred in 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 established by Donald Trump's administration to reduce employment in federal institutions.
The job cuts are not limited to the government sector. The crisis has also impacted the retail and technology industries. Several large companies, including HP Inc. and Walt Disney Co., have announced layoff plans.
Concerns about rising unemployment
Bloomberg reports that such drastic job cuts are causing concern among economists. Andrew Challenger, a labor market expert, points out that the combination of layoffs in the government, technology, and retail sectors, along with economic uncertainty, could lead to increased unemployment in 2025.
With the impact of the Department of Government Efficiency [DOGE] actions, as well as canceled Government contracts, fear of trade wars, and bankruptcies, job cuts soared in February, assessed Challenger.
Despite the sharp increase in layoffs, data also indicate the development 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 help mitigate the impact of the wave of layoffs on the job market.
