US Employer Layoffs Surge to Recession-Level Highs Amid Federal Government Job Cuts

Layoffs announced by U.S. employers surged in February to levels unseen since the last two recessions, according to a report by Challenger, Gray & Christmas on March 6. Planned job cuts jumped 245% to 172,017, the highest since July 2020 during the COVID-19 pandemic and the highest February total since the Great Recession 16 years ago. The federal government accounted for the bulk of the layoffs, with 62,242 announced job cuts across 17 agencies. This represents a 41,311% increase compared to the same period in 2024. Tech billionaire Elon Musk's Department of Government Efficiency (DOGE) is cited as a major factor, leading to funding freezes, spending cuts, and the dismissal of thousands of federal workers. Federal government contractors have also experienced job losses, and tariffs implemented or threatened by the White House have contributed to the layoffs. The "DOGE impact" was blamed for 63,583 layoffs, including those of federal workers and contractors. Most federal layoffs have occurred in Washington D.C., which has lost 61,795 jobs this year compared to 60 in 2024.