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Layoffs across the U.S. soared last month to more than 153,000, marking the worst October for job reductions in 22 years, according to outplacement firm Challenger, Gray & Christmas.Employers have announced early 1.1 million job cuts this year, the most through October since 2020, when pandemic shutdowns sent unemployment soaring.The labor market has shifted from a "no hire, no fire" environment — when employees enjoyed job security despite slower hiring — to one where companies are cutting costs and reducing staff as they lean on AI to replace human workers."October's pace of job cutting was much higher than average for the month," Andy Challenger, a workplace expert and chief revenue officer for Challenger, Gray & Christmas, said in a statement. He added, "Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes."Federal Reserve Chair Jerome Powell cited concerns about slower hiring in announcing interest rate cuts in September and October. The Department of Labor's monthly employment report has been on hold since the government shutdown began on Oct. 1, which delayed September's labor market data and is likely to postpone October's report. Other measures, including data this week from payroll processor ADP that showed muted hiring by private employers, point to a job market that has cooled sharply from earlier this year. "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market," Challenger added. The National Association for Business Economics forecast last month that the nation's unemployment rate, which was 4.3 % as of August, will rise to 4.5% in 2026.
