U.S. Planned Job Cuts Fall 53% in November

• Layoffs announced by United States (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, December 4, 2025, planned job cuts declined 53% to 71,321 last month from October. They were, however, 24% higher compared to the same period last year. November's tally was also the largest for the month since 2022.
• So far this year, employers have announced about 1.171 million job cuts, up 54% relative to the first eleven (11) months of 2024. In contrast, planned hires totalled 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 labour market in what policymakers and economists call a "no fire, no hire" state. Labour market stagnation has been blamed on reduced labour 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 (AI) into some job roles is also eroding demand for labour, 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.

(Source: Reuters)