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title:US planned job cuts fall 53% in November, Challenger says
source:Reuters
content:
A person reads a letter posted outside the shuttered Starbucks flagship roastery in Seattle, Washington, U.S., September 25, 2025. REUTERS/David Ryder WASHINGTON, Dec 4 (Reuters) - Layoffs announced by U.S. employers fell sharply in November, but hiring intentions continued to lag as businesses navigated an uncertain economic environment against the backdrop of tariffs on imports and slowing demand.
Global outplacement firm Challenger, Gray & Christmas said on Thursday planned job cuts declined 53% to 71,321 last month from October. They were, however, 24% higher compared to the same period last year, and November's tally was the largest for the month since 2022.
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So far this year, employers have announced about 1.171 million job cuts, up 54% versus the first 11 months of 2024. In contrast, planned hires totaled only 497,151, the lowest year-to-date total since 2010, and down 35% compared to the same period in 2024.
But the jump in planned layoffs so far this year has not translated into a surge in first-time applications for state unemployment benefits, keeping the labor market in what policymakers and economists call a "no fire, no hire" state.
Labor market stagnation has been blamed on reduced labor supply amid a reduction in immigration that started during the final year of former President Joe Biden's term and accelerated under President Donald Trump's administration.
The integration of artificial intelligence into some job roles is also eroding demand for labor, with most of the hit landing on entry-level positions.
Economists also said Trump's trade policy had created an uncertain economic environment that has hamstrung the ability of businesses, especially small enterprises, to hire.
"Layoff plans fell last month, certainly a positive sign," said Andrew Challenger, senior vice president at Challenger, Gray & Christmas.
Telecommunications providers, primarily Verizon, led planned job cuts last month. They were followed by technology companies and meat processing firms. Restructuring was cited as the main reason for planned job cuts in November.
AI was blamed for only 6,280 announced layoffs. So far this year, AI has accounted for 54,694 planned layoffs.
Companies also attributed planned job cuts to market and economic conditions, with tariffs also cited. Government spending cuts, which saw thousands of federal workers losing their jobs, have also contributed to a rise in planned layoffs among contractors and non-profit entities.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
Our Standards: [The Thomson Reuters Trust Principles., opens new tab](https://www.thomsonreuters.com/en/about-us/trust-principles.html)
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