The number of job cuts announced by U.S.-employers jumped to its highest level since the last two recessions in February, according to a global outplacement firm. The total number of planned job cuts surged 245% to 172,017, with the federal government accounting for the bulk of layoffs.
The Department of Government Efficiency (DOGE), led by tech billionaire Elon Musk, has been responsible for mass firings and funding freezes, affecting thousands of federal workers and contractors. This has resulted in a significant increase in job losses, with 62,242 announced federal layoffs reported across 17 different agencies.
The layoffs have also had an impact on private sector companies, particularly those affected by tariffs imposed by the White House. The DOGE’s impact was the top reason for job cuts, accounting for 63,583 layoffs, linked to both direct federal workforce and contractor losses.
Industry-specific job cuts were reported in retail, technology, services, and consumer products. However, it is unlikely that these layoffs will appear in the February employment report, which is scheduled for release on Friday.
Economists predict a slight increase in nonfarm payrolls, with an estimated 160,000 jobs added after rising 143,000 in January. The unemployment rate is forecast to remain unchanged at 4.0%.
Source: https://www.reuters.com/markets/us/us-announced-job-cuts-surge-245-february-federal-government-layoffs-2025-03-06