Among the massive federal workforce cuts led by Elon Musk’s Doge efforts, the informal but closely monitored measurement of U.S. labor market health, discovered in February, was the most layoff announcement since the early days of the pandemic.
However, employment has also increased slightly, with additional workers plans increasing 159% from the same period last year.
The US-based employer completely dropped 172,017 jobs in February. This is the highest total since July 2020, when 262,649 cuts were announced, the economy fell into the suffering of COVID-related shutdowns. This is the biggest count for February since 2009.
“Private companies announced last month plans to reduce thousands of jobs, particularly in retail and technology,” Gray & Christmas, senior vice president of Challenger, said in a statement released in the report.
Challenger data tracks publicly released job cuts. Some economists dislike reporting methodology because businesses reduce their workforce by terminating attrition or open job postings, which could result in lower actual layoffs and layoffs than announced totals.
Still, it is considered a fair barometer of the entire labor market. Another unofficial report from private pay processor ADP, released Wednesday, showed a sharp slowdown in the job market, which has acquired far fewer roles than forecast last month. An official report from the Bureau of Labor Statistics, scheduled to be released Friday morning, could indicate an even more weakening.
In addition to the federal government, retailers are also planning deep recruitment, Challenger found. This year, a dramatic increase from the industry’s 6,751 cuts announced in the first two months of 2024, bringing 45,375 total so far.
Many retailers launched this year at Shakier Ground as consumers tighten their spending and President Donald Trump’s new administration unlocks many new trade policies. Target and Best Buy said this week that prices will need to be raised to offset expected tariff costs. And even Walmart, where many wealthy shoppers flock to for bargains, warns that it is not “immunity” from the sudden import taxes on top American trading partners.
But while many industries are seeking impact, Challengers found that no sector has surpassed Washington in the job cuts scheduled for February, with 62,242 announced by 17 government agencies last month. So far, the government has cut 62,530 positions. This is a huge increase from the 151 cuts announced by February 2024.
“It appears the administration wants to cut more workers, but the order to fire around 200,000 probation employees was blocked by a federal judge. “The Challenger said.
Despite accelerated cuts and increasing uncertainty for businesses and consumers, the US economy retains many of the fundamental strengths it inherited when Trump took office.
Unemployment rates remain historically low, with many employers still planning to scooter more workers. The February employment announcement surged to 34,580 jobs, Challenger found its highest number this month since 2022. So far, the company plans to employ 40,669 workers.
Entertainment and leisure companies plan to hire 28,000 new workers, while the automaker has announced plans to add 4,831 roles this year.