Layoffs Reach Highest Levels Since 2020

Job cuts in the U.S. surged in February reaching their highest level since July 2020. Recent reports revealed that around 172,000 layoffs were announced last month, marking the worst February for job losses since 2009. The majority of these layoffs were in government positions mainly due to actions taken by the Department of Government Efficiency (DOGE) led by Elon Musk.

More than 62,000 government jobs were eliminated in February, accounting for over a third of the total layoffs. In the first two months of 2025 nearly 221,000 jobs were cut across various sectors. This marks the worst start to a year for layoffs since the Great Recession in 2009. Andrew Challenger, the senior vice president of the firm pointed to DOGE’s cost-cutting measures canceled government contracts, economic uncertainties and private bankruptcies as key reasons for the sharp rise in job losses.

Layoffs in the federal sector skyrocketed by 41,311% compared to the same period in 2024. This is largely due to policies introduced by President Donald Trump and Musk, who have pushed for reducing government spending. Agencies such as the Department of Defense and the U.S. Forest Service have been significantly affected by these cuts.

The U.S. labor market remains uncertain as more reports on employment trends are expected.