US Job Cuts Soar 245% in February Amid Federal Government Layoffs news, marking the highest layoff surge since the last two recessions.
The drastic increase in job cuts stems primarily from mass federal workforce reductions, canceled government contracts, and escalating trade war concerns, significantly impacting the labor market under President Donald Trump’s administration.
According to a report by Challenger, Gray & Christmas, U.S. employers announced 172,017 layoffs in February, a 245% spike from January, with federal government cuts making up a substantial portion.
The Department of Government Efficiency (DOGE), led by Elon Musk, has been at the forefront of these reductions, slashing spending and downsizing thousands of federal jobs across multiple agencies.
Summary:
- U.S. employers announced 172,017 job cuts in February.
- DOGE-driven layoffs accounted for 63,583 job losses.
US Job Cuts Soar 245% in February Amid Federal Government Layoffs:
Federal Layoffs Drive Largest Job Cut Surge Since COVID-19:
WASHINGTON, March 6 (Reuters) – Layoffs across the U.S. skyrocketed in February, reaching levels unseen since the last two recessions.
Mass federal government job cuts, canceled contracts, and escalating trade war fears have all contributed to the most dramatic labor market shift under President Donald Trump’s administration.
According to a report from global outplacement firm Challenger, Gray & Christmas, planned job cuts surged 245% to 172,017 last month, marking the highest total since July 2020, when the economy was still reeling from the COVID-19 pandemic.
It was also the highest February layoff count since the Great Recession in 2009.
The federal government was the hardest hit, with 62,242 announced job cuts spanning 17 agencies.
So far in 2025, government layoffs have totaled 62,530, representing a staggering 41,311% increase compared to the same period in 2024.
“When mass layoffs occur, remaining employees often feel uneasy and uncertain,” said Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas.
“Many workers may choose to leave voluntarily, compounding the workforce reduction.”
Elon Musk’s DOGE Cuts Deep Into Government Jobs:
Tech billionaire Elon Musk’s Department of Government Efficiency (DOGE) has been aggressively slashing public spending, freezing funding, and implementing deep workforce reductions.
These measures have led to thousands of federal government workers—including scientists and park rangers—being laid off.
President Trump has repeatedly criticized the federal government, calling it bloated and wasteful.
However, his aggressive downsizing hit a roadblock last week when a federal judge temporarily blocked the administration’s order to fire thousands of recently hired employees across agencies, including the Department of Defense.
Government contractors have also felt the effects of DOGE’s cost-cutting measures, leading to additional job losses in the private sector.
The White House’s ongoing tariff policies—both imposed and threatened—have further pressured businesses, forcing some to downsize their workforce.
According to Challenger, Gray & Christmas, the “DOGE impact” was the primary driver of job cuts in February, contributing to 63,583 layoffs across both federal agencies and contractors.
Additionally, the loss of government funding to private non-profits resulted in 894 more job cuts.
The impact of federal job losses has been most severe in Washington, D.C., which has lost 61,795 jobs so far this year, compared to just 60 in 2024.
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Private Sector Also Feels the Pain:
Beyond the government sector, layoffs have extended to other industries, including retail, technology, services, and consumer products.
However, these federal job cuts are not expected to appear in February’s employment report, scheduled for release on Friday, since most layoffs occurred outside the survey period.
Despite the surge in layoffs, nonfarm payrolls are still projected to grow, with economists predicting a 160,000 job increase in February, up from 143,000 in January, according to a Reuters survey. The unemployment rate is expected to remain steady at 4.0%.
With hiring freezes, funding cuts, and growing uncertainty, all eyes are on how the DOGE-driven layoffs will continue to reshape the U.S. labor market in the coming months.
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