US layoffs jump 58% in August over July, but remain lowest for the month since 2022

US employers announced more than 52,000 planned job cuts in August, marking a sharp increase from July but remaining well below last year's levels, according to Challenger, Gray & Christmas.

Companies announced 52,881 job cuts during the month, up 58% from the 33,429 cuts announced in July.

However, the figure was 38% lower than the 85,979 layoffs announced in August 2025 and represented the lowest August total since 2022.

Through the first eight months of the year, employers have announced 529,914 job cuts, down 41% from 892,362 during the same period last year.

Excluding government-related cuts, the decline is smaller, with 507,685 announced layoffs compared with 597,089 through August 2025, a decrease of about 15%.

The figures suggest that while companies are continuing to restructure their workforces, the labor market has not entered a broad-based wave of layoffs.

“This is the quietest August since 2022, but is generally on average for the month since the mid-2010s. What we’d like to see with low layoffs is an increase in hiring activity. While companies are making plans to hire more workers than last year, according to our numbers, it doesn’t appear those positions are being filled quickly,” said Andy Challenger, workplace expert and chief revenue officer of Challenger, Gray & Christmas.

A report by the Labor Department’s Bureau of Labor Statistics on Tuesday hinted at a similar phenomenon.

Job openings, a measure of labor demand, rose by 89,000 to 7.271 million on the last day of July, but the increase in available jobs did not translate into stronger hiring.

The number of hires fell by 278,000 to 5.054 million, while the hiring rate declined to 3.2% from 3.4%.

That distinction is becoming increasingly important.

Technology continues to lead job cuts

Technology remains the largest source of announced layoffs this year, despite recording its lowest monthly total of 2026 in August.

Technology companies announced 6,103 cuts last month, taking the sector's year-to-date total to 155,126.

That is 52% higher than the 102,239 cuts announced by technology companies during the first eight months of 2025.

The sector now accounts for 29% of all job cuts announced this year.

The layoffs come as technology companies continue to reorganize around artificial intelligence, cloud computing and changing consumer demand.

In the latest in this series, Uber is laying off 3,300 workers globally.

Microsoft announced in July that it would eliminate about 4,800 jobs globally after earlier offering voluntary buyouts to roughly 9,000 US employees.

Apple has also reportedly cut close to 150 positions, largely at its Cupertino headquarters, while TikTok's US joint venture closed its Nashville office last month and laid off 250 employees, according to labor documents filed with Tennessee.

Oracle has also been reported to be preparing additional job cuts globally.

The pattern suggests that technology companies are not necessarily cutting because demand has collapsed.

Instead, many are reshaping their organizations and reallocating resources toward areas expected to deliver stronger growth.

AI layoffs fall sharply in August

Artificial intelligence was no longer the biggest reason cited for job cuts in August, ending a five-month run.

Companies attributed 3,462 job cuts to AI during the month, the lowest monthly figure since December 2025, when 142 cuts were linked to the technology.

AI had been the leading cited reason for layoffs every month from March through July.

Despite the August decline, AI remains the biggest cited reason for layoffs on a year-to-date basis, with 116,175 announced cuts, representing roughly 22% of all job cuts.

Restructuring was the leading reason in August, accounting for 16,173 announced cuts, or 31% of the monthly total.

Market and economic conditions followed with 15,260 cuts, while company closings accounted for 6,743.

The shift away from AI as the top monthly reason could indicate that the initial wave of workforce reductions associated with automation and AI adoption is becoming less concentrated, although the year-to-date figures show that AI remains a significant driver of workforce restructuring.

Consumer products and food companies face pressure

Consumer products led all industries in August with 10,057 announced cuts, its heaviest month of the year.

Layoffs at Procter & Gamble and Estée Lauder contributed to the increase.

The sector has announced 28,574 cuts so far this year, down 20% from the 35,641 announced through August 2025.

Food producers announced another 7,982 cuts in August, taking their 2026 total to 22,367.

That represents a 75% increase from the 12,761 cuts announced in the sector during the same period last year.

Tyson accounted for nearly one-third of August's food-sector cuts, with the company citing pressures linked to a historic cattle shortage.

Financial companies announced 4,286 cuts in August and 22,912 for the year, down 49% from the same period in 2025.

Media recorded only 480 cuts in August, the lowest monthly total among the industries tracked by Challenger.

But the picture within media was less positive for news organizations.

News companies announced 416 cuts in August, the highest monthly total since May 2025.

That was up 222% from the 129 cuts announced in August last year. News-sector cuts have reached 1,727 so far this year, 12% above the comparable 2025 figure.

Hiring remains the missing piece

The biggest concern in the Challenger report is not necessarily the level of layoffs but the pace of hiring.

Employers announced plans to hire 12,325 workers in August, down 23% from July's 16,095 but 725% higher than the unusually low 1,494 plans announced in August 2025.

It was the strongest August hiring total since 2022.

Through August, companies have announced plans to hire 119,825 workers, up 37% from 87,626 during the same period last year. It is also the strongest January-to-August total since 2023.

Aerospace and defense companies led August hiring plans with 4,025 announced positions, followed by technology with 2,520 and industrial goods with 1,856.

Technology leads the year-to-date hiring tally with 19,751 planned positions, followed by aerospace and defense at 16,541 and automotive at 14,937.

“Employers are making plans to add workers, with 46% of those plans coming from manufacturing industries. The questions are how long will it take employers to actually fill these roles and will they find workers with the requisite skills,” said Challenger.

That gap between hiring plans and actual hiring could become a defining feature of the labor market in the months ahead.

ADP report reinforces signs of cooling

A separate report from ADP on Wednesday provided another indication that hiring momentum is weakening.

Private-sector employers added 38,000 jobs in August, according to ADP, down from an upwardly revised 46,000 in July and well below the 47,000 economists polled by Dow Jones had expected.

The increase was the smallest since January.

Healthcare continued to account for a substantial portion of employment growth, highlighting how concentrated hiring has become.

The ADP data suggest that companies are still adding workers, but broad-based demand for labor is becoming less evident.

The combination of modest payroll gains, limited layoffs and weaker hiring is consistent with a labor market that is cooling rather than collapsing.

Steady labor demand combined with limited layoffs are “consistent with full employment,” Fed Chairman Kevin Warsh said Friday at the US central bank’s annual conference in Wyoming.

The stable job market has fueled consumer spending and allowed the broader economy to forge ahead.

Friday's payrolls report takes center stage

The Challenger and ADP reports arrive ahead of Friday's closely watched nonfarm payrolls report from the Bureau of Labor Statistics.

Economists expect payrolls to increase by about 55,000 in August after an unexpected decline in July. The unemployment rate is expected to remain at 4.1%.

A result close to that forecast would reinforce the picture emerging from the private-sector data: employment growth is slowing, but the labor market remains relatively stable.