Report Shows Weakest Job Market Since 2009 Amid Shutdown And AI Disruption

Layoffs in the United States dropped in September, but hiring plans for the year remain at their weakest since 2009, according to a report by Challenger, Gray & Christmas.

Employers announced 54,064 job cuts last month, a 37% decline from August, yet total layoffs for 2025 stand at 946,426 — the highest year-to-date since 2020.

Hiring plans for US employers are at their lowest level in 16 years, a report said, adding to evidence of a labor market standstill https://t.co/iIVEkobsvr pic.twitter.com/6ukSglVSED

— Reuters (@Reuters) October 2, 2025

Hiring plans are also sluggish, with just 204,939 positions announced so far, the lowest since the aftermath of the Great Recession.

Analysts say the labor market is stagnating under the weight of new technologies, rising costs, and uncertainty around trade and immigration policies.

The number of layoffs of federal workers during the shutdown will likely be in the thousands, White House Press Secretary Karoline Leavitt tells reporters outside of the White House https://t.co/r2CUtrUZKT pic.twitter.com/7HFf1gf2Jf

— Bloomberg TV (@BloombergTV) October 2, 2025

The federal government accounts for nearly 300,000 layoffs this year, as President Donald Trump pushes an aggressive campaign to streamline the workforce amid the ongoing shutdown.

Meanwhile, the tech sector has shed over 100,000 jobs as artificial intelligence disrupts hiring.

Also read:

ADP Report Shows Surprising Job Decline Amid Shutdown

Companies in the U.S. cut 32,000 jobs in September, according to payroll processor ADP, in a troubling sign that the labor market is weakening. Wall Street had expected a gain of 45,000 jobs. The decline was concentrated in small businesses. Firms with 20–49 employees lost 21,

tippinsightsTIPP Staff

Stocks Slip As U.S. Government Shuts Down

U.S. markets opened lower Wednesday as the federal government entered its first shutdown in seven years after Congress failed to pass a funding bill. Dow futures dropped 219 points, while S&P 500 and Nasdaq futures fell 0.5% and 0.6%, respectively. Shutdowns historically have had limited impact

tippinsightsTIPP Staff