Jobs Grew More Than Expected, But Layoffs Increased in October

Job cuts hit the highest level for the month of October since 2003; meanwhile, private payrolls increased more than expected for the month.

Highest October Job Cuts Since 2003: According to the outplacement firm Challenger, Gray & Christmas, companies in the US cut 153,074 jobs in October, the highest amount of cuts in 22 years and a 183% surge since September. Reuters (Center bias) reported that “tech firms led the job cuts in the private sector, followed by retailers and the services sector.” 

Payrolls Increased More Than Expected: Despite nearly record-breaking layoffs, CNBC (Lean Left) reported that private payrolls rose by 42,000 jobs in October, according to payroll firm ADP. Companies employing at least 250 workers created all new jobs, while small businesses lost 34,000 workers. “The trend away from job growth at small businesses is significant, considering they are responsible for three of every four jobs,” CNBC wrote.

Why Are Companies Cutting Jobs? Cost-cutting was the top reason companies gave for layoffs in October, according to Reuters, but “DOGE impact” remained the leading reason for the year. Job cuts for the year remain at the highest level since 2020. Washington Examiner (Lean Right) also noted the adoption of artificial intelligence (AI) as a potential reason. “Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” the workplace expert and chief revenue officer for Challenger, Gray & Christmas said. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”

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