Layoffs are accelerating fast in the U.S., and 2025 is shaping up to be one of the most disruptive job-loss years in decades. More than 1.2 million job cuts were announced, pushing layoffs well beyond what most workers or policymakers expected coming into 2026 (as reported by the New York Times).
In the second half of the year, J&Y Law analysed federal labour records, monthly job-cut reports, and employer disclosures to understand what’s driving this surge. The data has been published in March 2026.
What stands out is not just how large the numbers are, but how persistent and uneven the losses have become across industries and regions.
This matters for U.S. society because layoffs are rising while hiring is barely moving. Through July 2025, employers created only 86,132 new jobs, even as layoffs continue at roughly 1.6 million per month, a gap that signals a labour market losing workers faster than it can replace them.
For example, 1,206,374 job cuts were announced in the U.S. in 2025, ranking it the 7th worst year since 1989. The review of the year further finds that 62,075 layoffs occurred in July 2025 alone, up 140% year over year.
Another way of expressing the data is with 1.6 million workers are being laid off per month, equal to 19.2 million annualised. In terms of specific sectors, 308,167 government jobs were cut in 2025, the highest of any sector. After this, 154,445 technology jobs were eliminated, a 36% increase from 2024.
The situation for 2026 remains problematic, not least through advances in technology. For instance, 54,000 layoffs were explicitly linked to AI or automation adoption.
The key trends are outlined in the following table:
U.S. Job Cuts by Sector and Region, 2025 (Year-to-Date)
| Sector / Region | 2025 Job Cuts | YoY Change | Primary Driver |
| Government | 308,167 | +703% | Automation upgrades, federal restructuring |
| Technology | 154,445 | +36% | AI adoption, role consolidation |
| Retail | 92,989 | +249% (July) | Automation, store closures |
| Nonprofit | 17,826 | +413% | Funding pressure, automation |
| Automotive | 4,975 | Highest since Nov 2024 | Tariffs, automation |
| Washington, D.C. | 434,385 | +219% | Federal job cuts, automation |
| Eastern U.S. Total | 540,539 | +173% vs 2024 | Government concentration |
What This Data Reveals
Layoffs have become structural, not temporary
With more than 1.2 million job cuts announced and monthly layoffs averaging 1.6 million, employers are making long-term reductions, not short-term corrections. Historically, this pattern appears when companies expect slower demand to last, not rebound quickly.
Government and policy decisions now drive national job losses
Government job cuts reached 308,167 in 2025, surpassing those in every private-sector industry. Between January and July alone, 292,294 federal and government-linked jobs were eliminated, marking a shift from past downturns that private companies led.
AI and automation are eliminating jobs faster than the market can adjust
At least 54,000 layoffs were directly tied to automation or AI, while tech job losses climbed 36% year over year. Retail followed with a 249% spike in July layoffs, showing that automation now affects white-collar, service, and logistics roles at the same time.
Why This Matters Now Layoffs tied to AI are accelerating into late 2025 instead of slowing. July’s 62,075 job cuts, up 140% year over year, show momentum is still building. With hiring plans falling to their lowest level since 2010, workers displaced by automation are facing longer unemployment spells, making these numbers a critical early warning signal for 2026 workforce planning and policy coverage.
