Layoffs across the U.S. this year are at their highest level since 2020, new data shows

Employers across the U.S. cut nearly 950,000 jobs this year through September, the largest number of layoffs since 2020, according to outplacement firm Challenger, Gray & Christmas.

Job cuts could surpass more than 1 million in 2025, the group forecast. The layoffs this year, although elevated, remain well below the massive workforce reductions in 2020, when the pandemic shuttered businesses across the nation, leading to 2 million layoffs through September of that year, Challenger noted.

The rise in layoffs comes as the labor market has stalled in recent months, with employers also sharply scaling back their hiring plans, according to labor data. Companies now expect to bring on 58% fewer workers for the rest of the year compared with their projections a year ago, the firm found.