An attendee brought a flyer at a recruitment event for the City Career Expo in Sacramento, California, USA on Thursday, February 27, 2025. The U.S. Bureau of Labor Statistics plans to release unemployment data on March 7.
Davis Paul Morris | Bloomberg | Getty Images
Grey and Christmas reported Thursday that Donald Trump’s efforts to cut federal labor have made a big impression on the labor market in February, with the highest posting announced in nearly five years.
The company reported that U.S. employers announced 172,017 layoffs this month, up 245% from January, the highest monthly count since July 2020, a period of uncertainty over the COVID pandemic. In addition, during the global financial crisis, it was the highest total since February 2009.
More than a third of the total comes from the efforts of billionaire entrepreneur Elon Musk, the blessing of Trump to reduce the federal government. Challenger believes that the total announced federal job layoffs are 62,242, accounting for 17 agencies.
“The layoffs soared in February with the impact of the Department of Government Efficiency (DOGE) action, and canceled government contracts, fears of a trade war and bankruptcy,” Andrew Challenger, the company’s workplace expert, said in a press release.
The reduction in January brought the total to 221,812 in the first two months of the year, the highest since 2009, up 33% from the same period in 2024.
The report has intensified its focus on the labor market and economy as Trump’s tariff plan, the scale of cuts in the size of the government and mass deportations, and strict immigration restrictions are forming.
There are many different indicators about where things are going, and consumer surveys show concerns about inflation and layoffs, while other data show that economic strength continues. Payroll processing company ADP reported Friday Private sector recruitment It only grew by 77,000 in February.
According to the Challenger Report, it’s not just a government retreat.
Retail cuts 38,956 cuts as companies like Macy’s announced sharp drops. The industry’s cuts in 2025 are nearly six times higher than those in 2024. The technology company also listed another 14,554 reductions, although the industry’s cuts were actually lower than the same period last year.
On the plus side, the company announced plans in February to hire a total of 34,580 new workers, which brought the year to a total of 159% from the same period last year.
In the last few weeks, initial unemployment claims have increased Especially in Washington, DC.
