Job cuts across the United States surged to their highest October total since 2003, signaling growing strain in the labor market as the economy moves into the holiday season. Employers announced 153,074 layoffs in October, a 175% increase from the same month last year and 183% higher than in September, according to a report from Challenger, Gray & Christmas, Inc.
U.S. Job Cuts 2025 Raise Local Concerns
The report shows that 1,099,500 job cuts were announced nationwide between January and October, a 65% rise from 2024. This year’s total is the highest since 2020, when pandemic-related closures triggered more than two million layoffs. The largest numbers came from the District of Columbia, California, and New York, underscoring widespread effects across both public and private sectors.
For the San Gabriel Valley, the sharp increase in layoffs poses challenges for local employers and workers in logistics, manufacturing, and service industries. California recorded 158,734 layoffs so far this year, placing additional pressure on regional economies reliant on warehouse and transport operations. Retail and temporary job postings in El Monte, South El Monte, and Baldwin Park have already slowed compared with last year’s seasonal trends.
AI and Costs Driving Employment Shifts
The rise in job cuts is linked to several structural and economic factors. Artificial intelligence adoption continues to reduce the need for administrative and technical positions, while higher operating costs have prompted companies to consolidate or delay expansion plans. Consumer spending has also softened, limiting new hiring across both retail and hospitality sectors.
In the government sector, the so-called “DOGE” effect—an ongoing result of the prolonged federal shutdown and delayed program funding—has led to additional workforce reductions. With the shutdown still active as of November 9, the labor market is expected to remain weak through the end of the year.
Regional Impact Likely to Continue
Economists tracking the state’s employment trends predict that Southern California could see continued slowdowns in hiring into early 2026. The San Gabriel Valley’s interconnected job base means even modest national layoffs can ripple through logistics centers, educational institutions, and local government departments.
The full October 2025 report from Challenger, Gray & Christmas is available at challengergray.com, providing detailed data on industry-level job reductions and national employment trends
