U.S. September Job Cuts Drop as Hiring Plans Hit 2011 Low

U.S. employers announced 43,281 job cuts in September, a 20% decrease from the previous year and the lowest total for the month since 2022. Year-to-date layoffs have declined by 39% compared to 2025, though the technology sector led September losses with 10,799 cuts. Artificial intelligence continues to be the primary driver of job losses in 2026, accounting for roughly 21% of all cuts this year.

Despite the decline in layoffs, Andy Challenger of Challenger, Gray & Christmas reported that hiring plans for September reached their lowest level since 2011. This cautious environment is evident in seasonal hiring; Spirit Halloween and Michaels announced 62,000 positions, a sharp drop from the 100,800 positions announced by similar employers in September 2025.

Challenger attributed the hiring slowdown to a combination of high energy costs, potential interest rate hikes, rising healthcare expenses, and geopolitical uncertainty surrounding a war in Iran. He noted that while hiring plans are up over the year, the typical holiday surge is missing, suggesting companies are adopting a wait-and-see approach.