Job cuts in the U.S. have reached their highest levels since past recessions due to federal government layoffs, contract cancellations, and trade war concerns.
Reports from Challenger, Gray & Christmas reveal that job cuts jumped 245% in February, with government layoffs leading the surge.
The federal government alone has laid off over 62,500 workers, marking a staggering 41,311% increase from last year. Many remaining employees feel uncertain, raising concerns of voluntary resignations.
Elon Musk’s Department of Government Efficiency (DOGE) has pushed for spending cuts, leading to mass layoffs across federal agencies.
The Trump administration considers the federal workforce excessive, prompting funding freezes and firings.
However, a federal judge has temporarily blocked further job cuts in some departments. Private contractors have also been affected, adding to the overall job losses.
While most layoffs are in Washington, D.C., job cuts have also hit retail, technology, and service sectors.
The employment report may not reflect all layoffs immediately, but economic analysts warn of long-term impacts on government and private sector employment.