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Layoffs in the US surged in July, exacerbated by pressures from government spending cuts and the expansion of artificial intelligence (AI).
A monthly report released Thursday by Challenger, Gray & Christmas stated that US-based employers announced 62,000 job cuts in July, up 30% month-on-month (MoM), and higher 140% year-on-year (YoY).
Since the beginning of this year, the total number of announced layoffs in the US has reached 806,000, exceeding the total number of job cuts recorded in 2024, which amounted to 761,350.
In a statement today, Andrew Challenger, the company's Vice President, stated that the cuts made by the Department of Government Efficiency, in addition to the expansion of AI applications, were the main drivers of the high layoff rates.
The report showed that the total number of layoffs in the federal government has reached 292,290 employees since the beginning of this year, while technology companies have laid off 89,250 employees, and the retail sector has laid off 80,400 employees.
Investors are awaiting the release of the US jobs report for July tomorrow, with expectations that the economy will add 100,000 jobs and the unemployment rate will fall to 4.1%, compared to 4.2% the previous month.
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