US Monthly Job Cuts Hit Two-Year Low in July

US-based employers announced 33,429 job cuts in July 2026, marking the lowest monthly total in two years. This figure represents a 27% decline from the 45,849 layoffs reported in May. For the first seven months of 2026, total job cuts reached 477,033, a 41% decrease compared to the 806,383 cuts reported during the same period in 2025.

Despite the broader downward trend, the technology sector continues to experience the highest volume of losses. The sector saw 9,867 cuts in July, bringing its year-to-date total to 149,023.

Challenger, Gray & Christmas reported that artificial intelligence remains the primary catalyst for these reductions. AI accounted for 10,970 layoffs in July, the fifth consecutive month it has been the leading cause of job losses. Throughout 2026, AI-related cuts have contributed to approximately 24% of all announced job reductions.