U.S.-based employers announced 54,064 job cuts in September, a down 37% from August and 26% lower from the 72,821 announced in the same month last year, Challenger, Gray & Christmas said on Thursday.

So far in 2025, companies have announced 946,426 job cuts, the highest year-to-date total since 2020, when the pandemic led to 2.08M announced job cuts as entire industry sectors, such as leisure and hospitality, ground nearly to a halt. The 2025 year-to-date total is the fifth highest in the 36 years Challenger has reported.

The YTD total climbed 55% from the same period last year, and has already exceeded full-year 2024’s total by 24%.

“It’s very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series. Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. With rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas.

Among industry sectors, services announced the most job cuts in August at 6,290, surging from 1,862 in August and 2,996 in September 2024. Year-to-date, the industry announced 61,590 job cuts, up 64% from the same period a year ago.

The energy industry announced 5,807 in job cuts, bringing the year-to-date total to 14,811.

More on the US Labor Market

• U.S. private sector employment pulls back in September: ADP jobs report

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