Job Cuts Skyrocket: A Closer Look at the Numbers

A Sharp Increase in Job Cuts

The job market is facing significant challenges. In October 2025, companies in the U.S. cut 153,074 jobs. This marks a substantial increase from October 2024, when only 55,597 jobs were cut. Additionally, it's a notable rise from the previous month, with 54,064 job cuts in September 2025.

Reasons Behind the Job Cuts

Several factors contribute to this trend:

• Post-Pandemic Scaling Back: Some industries are reducing their workforce after hiring heavily during the pandemic.
• AI and Automation: Companies are increasingly using AI, which reduces the need for human labor.
• Higher Costs and Lower Spending: Rising costs and decreased spending are forcing companies to cut jobs.

Shocking Statistics

• October 2025 vs. September 2025: Job cuts were 183% higher.
• October 2025 vs. October 2024: Job cuts were 175% higher.
• Highest Since 2003: This is the highest number of job cuts in October since 2003.
• Year-to-Date: From January to October 2025, companies cut 1,099,500 jobs, which is 65% more than in the same period in 2024.

Tech Industry Hit Hardest

The tech industry is particularly affected:

• October 2025: Tech companies cut 33,281 jobs.
• September 2025: This is nearly six times more than the 5,617 jobs cut in September 2025.
• AI Impact: As AI improves, companies can do more with fewer people, raising concerns about the future of jobs that AI can perform better and cheaper than humans.

Restaurants and Retail

It's not just tech:

• Restaurant Closures: Outback Steakhouse closed 21 restaurants in October 2025, with more closures expected.
• Bigger Trend: More restaurants and stores are closing daily, leading to more job losses.

Household Debt and Financial Struggles

• Record High Debt: Household debt in the U.S. hit a record high of $18.6 trillion in the third quarter of 2025.
• Young Adults: The rate of seriously delinquent debt among 18 to 29-year-olds is about 5%, more than double what it was a year ago.

Government Shutdown Impact

The government shutdown is exacerbating the situation:

• Disruptions: It's causing disruptions to food aid benefits, child care, and health insurance.
• Human Impact: One woman in Rhode Island expressed concern about having to eat cat food if food stamp benefits are cut off.

Stress and Mental Health

• Stress Levels: 75% of Americans are more stressed about the country's future than before.
• Affected Groups: Young adults and parents are particularly stressed, worrying about AI, political division, and the future.
• Health Impact: This stress is affecting people's mental and physical health.