US layoffs reach highest level in October since 2003

The low-hiring, low-firing job market suddenly has a lot of firing.

U.S. employers announced 153,074 job cuts in October, the most for the month since 2003, consulting firm Challenger Gray & Christmas said Thursday. That was more than double the 54,064 layoff announcements in September, and a 175% increase compared to October 2024.

Increased layoffs are a red flag for the health of the labor market, which is slowing down due to almost any measure available. The latest data from the Bureau of Labor Statistics showed that job growth fell sharply over the summer as uncertainty related to tariffs, federal workforce cuts, President Donald Trump’s crackdown on immigration, and the adoption of artificial intelligence all took their toll.

Reports from companies like Challenger typically take a back seat to official data from the BLS because BLS data are more comprehensive, rely on large surveys, and are considered the “gold standard” of reliability by economists. But with the government and all of its statistical agencies closed since October 1, investors, business leaders and officials at the Federal Reserve must rely on alternative data sources to assess the health of the economy.

“Some industries are correcting after a pandemic-driven hiring boom, but this comes at a time when AI adoption, easing consumer and corporate spending, and rising costs are tightening belts and freezing hiring,” Andy Challenger, workplace expert and chief revenue officer at Challenger, said in a press release. “Those who are laid off now find it more difficult to secure new jobs quickly, which can further soften the labor market.”

The layoff announcements in October came from the country’s largest employers. For example, Amazon said it would lay off 14,000 company employees because artificial intelligence made their jobs unnecessary.