(C) Visual Capitalist

New York — US employers have announced more than 1.17 million job cuts from January through November of this year, a sharp 54% increase compared to the same period last year, according to a recent analysis by the outplacement and business coaching firm Challenger, Gray & Christmas. This figure marks the largest number of announced layoffs for the first eleven months of the year since the pandemic peak in 2020.

 
A Spiking Trend in Corporate Downsizing

The data compiled by Challenger reveals a significant escalation in workforce reductions. In November alone, employers announced 71,321 job cuts, representing a 24% rise from the 57,727 announced in November of the preceding year. Cumulatively, the 1,170,821 layoffs announced from January to November are starkly higher than the 761,358 recorded during the corresponding period last year.

Year-to-Date (Jan-Nov) Layoff Announcements: 1,170,821
Change from Last Year: +54%
November 2025 Layoffs: 71,321
Change from November 2024: +24%
This surge highlights a dramatic shift in corporate hiring and retention strategies as companies respond to a confluence of economic and technological pressures.

 
Key Drivers of Job Reductions

Challenger's analysis indicates that a variety of factors are contributing to the rise in job cuts:

Restructuring: The most frequently cited reason for job reductions is corporate restructuring, as businesses seek to streamline operations and enhance efficiency in a more competitive environment.
Artificial Intelligence (AI): The increasing adoption of AI and other automation technologies is leading to the elimination of roles, particularly those focused on repetitive or data-intensive tasks.
Market and Macroeconomic Conditions: Uncertain market conditions and the broader macroeconomic environment are prompting employers to exercise greater caution in spending and labor force management.
Tariff Policies: Changes in tariff policies and international trade dynamics are also influencing some companies' decisions to reduce their domestic workforce.
 
Employment Indicators Show Broad Weakness

The Challenger report aligns with other recent data suggesting a cooling in the US labor market.

ADP Report: The Automatic Data Processing (ADP) report, released just a day prior, indicated that private sector employment in the US decreased by 32,000 jobs in November compared to the previous month. This marks the largest monthly decline since March 2023, signaling a widespread slowdown in hiring activity.

Nela Richardson, ADP’s Chief Economist, noted that "Employment has shown volatile patterns recently as employers respond to cautious consumers and an uncertain macro environment." She added that the November slowdown was broadly felt, with small businesses driving the largest portion of the reduction.
 
A Curious Disconnect in Unemployment Claims

Despite the significant number of announced layoffs and the soft ADP data, the reported number of unemployment claims presents a curious counterpoint.

Initial Claims: Data released by the US Department of Labor shows that initial claims for unemployment insurance for the week of November 23-29 fell by 27,000 to 191,000. This is the lowest level of initial claims seen in three years and two months, specifically since September 2022.
Continuing Claims: Continuing jobless claims—a measure of those receiving benefits after the first week—have remained stable, hovering around the 1.9 million mark since May.
This apparent disconnect suggests that while large-scale layoffs are being announced by employers, the immediate impact on the number of people filing for unemployment benefits may be mitigated by factors such as:

Delayed Filing: A lag between the announced layoff date and the employee’s actual separation date.
Quick Re-employment: Laid-off workers, particularly those with in-demand skills in the technology and specialized sectors, may be finding new jobs quickly, preventing them from needing to file for or continue receiving benefits.
In summary, while the overall labor market appears to be contracting, with significant year-over-year growth in announced job cuts and weak private hiring data, the historically low initial unemployment claims suggest underlying resilience or a unique dynamic in how recently displaced workers are re-engaging with the job market. This divergence will be a critical trend for policymakers and economists to monitor as the year concludes.