US layoffs fell in September, but year-to-date hiring plans hit a 16-year low, signalling a slowing labour market. The government shutdown has stalled key economic data, deepening uncertainty as AI, trade policy and cost pressures reshape employment.
US layoffs declined in September, but year-to-date hiring plans were the weakest in 16 years, according to a report released Thursday by outplacement firm Challenger, Gray & Christmas.
The data points to a labour market slowdown, with both demand and supply of workers easing due to policy changes and technological shifts.
The report has gained significance as the ongoing US government shutdown has suspended key economic releases, including the September employment report that was scheduled for Friday.
This 15th shutdown since 1981 has already furloughed 750,000 federal workers and delayed the release of weekly jobless claims, August factory orders, and construction data. The trade report is also expected to be postponed.
STORY CONTINUES BELOW THIS AD
Challenger, Gray & Christmas said planned job cuts dropped 37% month-on-month to 54,064 in September. Employers have so far this year announced 946,426 job cuts, the highest year-to-date since 2020.
Hiring plans so far this year have totaled 204,939, the lowest year-to-date since 2009 when the economy was just emerging from the Great Recession.LABOR MARKET IS STAGNATING
“Right now, we’re dealing with a stagnating labor market, cost increases and a transformative new technology,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “With rate cuts on the way, we may see some stabilizing in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring.”
The Federal Reserve resumed easing policy