US Layoffs Could Cross 1 Million in 2025 Amid Government Shutdown, Rising Inflation and Recession Fears: Report
The US economy and its labour market are under pressure as job cuts have increased significantly. Layoffs in the United States could reach one million amid the government shutdown, fears of a recession, and rising inflation. A report stated that new data revealed job losses could be the second largest if they exceed one million.
Washington, October 5: The US economy is reportedly nearing the brink of recession amid massive job cuts and the government shutdown. The layoffs in the United States have already crossed nearly 9,50,000 by September and may hit one million, as per a report. Amid this, inflation in the US is expected to surge back to 4% and the Federal Reserve has reduced interest rates by 0.25%, planning further cuts to stabilize the market stagnation.
The 9,50,000 job losses in the United States are the highest since 2020, stated reports, coinciding with a slowdown in the labour market. As per reports, the employment data showed that US companies have reduced recruitment plans by up to 58% for the remainder of the year compared to the previous year. ‘NaMo Semiconductor Lab’ at IT Bhubaneswar To Strengthen India’s Chip Design Ecosystem, Boost ‘Make in India’ Drive: MeitY.
US Layoffs Could Hit 1 Million
As per the predictions by Challenger, Gray & Christmas, the job cuts might exceed one million in 2025, stated CBS News in its report. The number of employees affected, despite being large, is lower compared to 2020 figures. During that time, the pandemic affected businesses and job cuts surged to around 2 million through September of 2020.
The report said that Andy Challenger from Challenger, Gray & Christmas mentioned that during previous periods, many job cuts occurred at the time of recession or the first wave of automation that affected the manufacturing and tech sector. Besides, it mentioned that the US government shutdown could lead to more job losses in the country. CBS said that the White House Office of Management and Budget told federal agencies last week to consider layoffs during a closure. Bitcoin Hits New All-Time High: World’s Largest Cryptocurrency Sets New Record Today by Crossing USD 1,25,000 Mark.
The Challenger data suggested that the pace of layoffs was easing as businesses announced 54,000 job cuts compared to 86,000 announced in August, marking a 37% drop. Challenger data showed that falling interest rates could give businesses and consumers some relief, making it easier for companies to expand operations and bring on new employees. Lower borrowing costs provide firms with more room to invest and grow, which in turn may strengthen the job market. CBS said that the US job market in the fourth quarter could see some stabilisation.
(The above story first appeared on LatestLY on Oct 05, 2025 05:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).