Layoffs reach the highest level since the 2020 pandemic
Layoffs in the United States have reached the highest levels since the 2020 pandemic, with sectors such as federal and retail being the most affected
One of the sectors hardest hit by this wave of layoffs has been the federal government. Amid an aggressive cost-cutting campaign driven by the Elon Musk administration at the Department of Government Efficiency (DOGE), numerous federal agencies have seen massive staff cuts. These include the Department of Health and Human Services, the Department of Education, and USAID.
Layoffs have also spread to nonprofit organizations, with more than 17,000 workers affected, representing a 407% increase compared to the previous year.
The economic situation, while still solid in many respects, is being affected by trade policies and growing uncertainty in the financial markets. Tariffs imposed by the Trump administration on foreign imports are having a negative impact on trade and the overall economy.
Although the unemployment rate in the United States remains relatively low at 4.2%, the outlook for economic growth appears to be moderating. Economists warn that the country could experience a significant economic slowdown in the coming months. This situation has left many companies restructuring and making drastic decisions to stay competitive, resulting in a continued increase in layoffs.
Despite the continued decline in jobs in some sectors, the report shows that hiring remains steady. According to the Department of Labor, 147,000 jobs were created in June.