DOGE onslaught pushed layoff announcements to highest point since 2020
An unofficial but closely watched gauge of the labor market found February had the most layoff announcements since early in the pandemic, led by massive federal workforce cuts.
An unofficial but closely watched measure of the U.S. labor market's health found February had the most layoff announcements since early in the pandemic amid massive federal workforce cuts led by Elon Musk's DOGE effort.
Yet hiring is also picking up somewhat, with plans for worker additions up 159% from the same period last year.
U.S.-based employers shed 172,017 jobs in February altogether. That's the most in a month since July 2020, when 262,649 cuts were announced and the economy was in the throes of Covid-related shutdowns, according to a report Thursday from the global outplacement and executive coaching firm Challenger, Gray & Christmas. It's the biggest count for any February since 2009.
“Private companies announced plans to shed thousands of jobs last month, particularly in retail and technology," Andrew Challenger, senior vice president at Challenger, Gray & Christmas, said in a statement released with the report. "With the impact of the Department of Government Efficiency [DOGE] actions, as well as canceled Government contracts, fear of trade wars, and bankruptcies, job cuts soared in February."
Challenger's data tracks publicly announced job cuts. Some economists dislike the report's methodology because actual layoffs and firings can be lower than announced totals as firms reduce their workforces through attrition or by closing open job postings.
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