Economy Faces Struggles as Employers Cut 1.1 Million Jobs

Economy Struggles: A Wave of Layoffs in 2025

The economy is facing significant challenges as employers have cut 1.1 million jobs through November 2025, marking the highest level of layoffs since 2020. In comparison to last year, this represents an alarming 54% increase in job cuts, where 761,358 jobs were lost. This trend marks only the sixth time since 1993 that job losses have exceeded 1.1 million during the first 11 months of the year.

Leading Sectors in Job Cuts

Among the sectors facing the most significant reductions, the technology sector leads with 153,536 layoffs, which is a 17% increase from the previous year's 130,701. Amazon exemplifies these cuts, having announced a reduction of 14,000 jobs as part of their shift towards AI tools for enhanced efficiency.

The retail sector has also seen significant workforce reductions, with 91,954 jobs eliminated by November, as consumers have tightened their spending due to rising prices. This year's seasonal hiring is projected to hit the lowest levels in 15 years, with expectations of only 265,000 to 365,000 seasonal workers hired, down from 442,000 last year.

Reasons Behind the Layoffs

• Department of Government Efficiency: A significant contributor with almost 300,000 job losses this year.
• Market Conditions: Cited for 245,086 layoffs, alongside numerous business closures.
• AI Developments: Responsible for 54,700 job cuts.
• Tariffs: Approximately 8,000 failures in maintaining positions due to raised costs.

Small businesses remain particularly vulnerable, with fewer than 50 employees experiencing the most severe impact due to thin margins and rising operational costs. New data from payroll firms indicates a rise in cuts, with 32,000 jobs lost in November alone, predominantly from smaller employers.