Economic Insights – Analysis
In a significant development, employee layoffs in the United States surged to unprecedented levels in February, aligning with the initiatives of President Donald Trump aimed at curtailing federal expenditures.
According to data released by Challenger, Gray & Christmas, there were 172,010 employee layoffs across the nation last month. This figure marks an increase of approximately 245% on a month-to-month basis, representing the highest monthly layoffs since July 2020, when the COVID-19 pandemic reached its peak.
Furthermore, this is the largest number of job reductions recorded for February since the ramifications of the global financial crisis in 2009.
Notably, over a third of all layoffs can be attributed to initiatives from the Government Efficiency Ministry, which operates under the leadership of billionaire Elon Musk. This ministry has facilitated a reduction of 62,240 federal positions across 17 agencies.
Since the beginning of 2025, the total number of job reductions in the United States has reached 221,800, the most significant for this period since 2009, marking an increase of approximately 33% compared to levels reported in 2024.
The combination of this spike in federal job reductions, ongoing initiatives by the Government Efficiency Ministry, and concerns surrounding trade tensions and potential bankruptcies have contributed to the overall reduction in jobs observed in February.
According to ADP statistics, the non-agricultural private sector in the United States added 77,000 jobs last month. This figure shows a decline from the 186,000 jobs added in January, falling short of the projected increase of 141,000 and marking the lowest level since last July.
The forthcoming report set for release tomorrow is expected to indicate that the unemployment rate remains stable at 4%, with expectations of an addition of 170,000 jobs.
For more updates, subscribe to our channel on Telegram.
