Layoffs in the US surged by 245% compared to the previous month, setting a new record. In February, a total of 172,017 people were laid off due to job cuts in the federal government, canceled contracts, trade war fears, and bankruptcies affecting the country. Challenger, Gray & Christmas, a firm that tracks layoffs, released its report for February, revealing that US-based employers announced 172,017 job cuts during the month. This marks the highest number of layoffs recorded in February since 2009, surpassing the 186,350 layoffs that occurred back then. It is also the highest monthly total since the 262,649 layoffs announced in July 2020. Layoffs in February rose by 245% compared to the previous month and increased by 103% compared to the same period last year. In the first two months of this year, layoffs reached 221,812, marking a 33% increase compared to the same period in 2024.

MASS LAYOFFS IN THE PUBLIC SECTOR
Last month, a total of 62,242 layoffs were announced from 17 different agencies within the federal government. Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, mentioned that private companies planned to lay off thousands of employees last month, particularly in the retail and technology sectors. According to Challenger, layoffs in February increased due to actions by the Department of Government Efficiency (DOGE), canceled public contracts, trade war concerns, and bankruptcies. Challenger noted that employees facing mass layoffs often feel uneasy and uncertain, increasing the likelihood of many choosing to leave their jobs voluntarily in such circumstances.