US employers announced a record-high 172,017 layoffs in February, with over one-third attributed to billionaire entrepreneur Elon Musk’s efforts to reduce the federal workforce. This marks the highest monthly count since July 2020 and surpasses previous records set during the global financial crisis in 2009.
President Donald Trump’s plans for government cuts have had a significant impact on the labor market. Over 62,242 federal jobs were announced as being cut, with layoffs spanning across 17 agencies. The job losses are largely attributed to uncertainty from trade wars, bankruptcies, and reduced government contracts.
The overall number of job cuts for the first two months of the year stands at 221,812, the highest since 2009. While consumer surveys show concern over inflation and layoffs, other data suggests economic strength continues. In contrast, private sector hiring grew by just 77,000 in February according to ADP.
Retail saw significant staff reductions, with companies like Macy’s and Forever 21 announcing sharp cuts. Technology firms also listed job openings at 14,554. However, the sector’s layoffs are lower compared to last year.
On a positive note, firms announced plans to hire a total of 34,580 new workers in February, putting the year-to-date total up 159% from the same period last year. Initial unemployment claims have seen an uptick, particularly in Washington, D.C., where government workers are prominent.
Source: https://www.cnbc.com/2025/03/06/layoff-announcements-soar-to-the-highest-since-2020-as-doge-slashes-federal-staff-.html