Employment Services NAICS 5613

Nov 6, 2025 - US Job Losses in 2025 Top 1 Million

• About 1.1 million American jobs have been cut so far in 2025, up roughly 65% from the same period last year, according to career services company Challenger, Gray & Christmas. In October alone, employers announced about 153,000 cuts, triple the cuts from September and a 140% increase year over year. The largest reductions came from the federal government (~292,000 cuts), followed by technology (~89,000), retail (~80,000), and non-profits (~17,800). Workforce reductions in technology are being driven largely by AI adoption, accounting for over 10,000 cuts so far this year, and contributing to a 36% increase in sector layoffs compared with 2024. Government spending cuts not only affect federal employees, but Department of Government Efficiency reductions to grants and research continue to ripple into the nonprofit sector. Rising tariffs also remain a significant factor in the ongoing wave of workforce reductions.
• A recent McKinsey survey of more than 9,500 US adults found that remote flexibility remains a decisive factor in retaining skilled professionals. About 43% of prime-age employees (25-54) already work remotely, while nearly 60% want that option, creating a 17-point expectation gap that fuels resignations. Seventeen percent of recent quitters left after employers tightened in-office mandates, and three-quarters of college degree holders reject inflexible roles. Among those with bachelor’s degrees, 60% currently work remotely and 75% prefer it, while high-income households (making $100,000+) show even stronger preferences (up to 70% favoring remote work). The survey also found women prefer remote work 8 to 3 points more than men, meaning strict attendance policies can undermine diversity and retention. McKinsey data further link flexibility to performance: 35% of hybrid companies reported double-digit revenue growth versus 28% of office-bound firms. The results suggest that autonomy, not proximity, now defines workplace competitiveness.

• Companies across multiple industries are cutting tens of thousands of white-collar jobs as artificial intelligence (AI) automates tasks once handled by office staff. Amazon plans to eliminate about 14,000 corporate roles, or roughly 10% of its white-collar workforce, while UPS has shed a similar number of management jobs in under two years. Target has reduced about 1,800 corporate positions. AI tools now perform work such as coding, data analysis, and document review, allowing companies to maintain or improve productivity with fewer employees. Job seekers face a tighter market—only about 20% of Americans say they are very confident in finding good jobs, and recent graduates are submitting more applications but receiving fewer offers. Employers are becoming more selective, favoring closely aligned experience, while remaining staff face heavier workloads as firms adopt leaner, AI-driven operating models that prioritize efficiency over headcount growth.
• Healthcare industry hiring is propping up the weakening US job market and accounting for about 86% of all monthly job additions, according to the US Labor Department. Of the economy’s 74,000 average new jobs a month in 2005 (down from last year’s 130,000 per month gain), about 64,000 of them are in the healthcare and social assistance sectors, essentially propping up virtually all US job gains. The US economy has 23.5 million health services jobs, compared to 12.7 million in manufacturing and 16.6 million in retail. Healthcare job growth is historically recession-proof given the cost is not typically an optional expense, especially among an aging US population. The more than $900 billion in Medicare cuts in Trump’s 2025 reconciliation bill is of major concern for the industry going forward and could lead to job losses.