U.S. employers announced 172,017 job cuts in February, a 245% spike driven by Elon Musk’s DOGE program and Trump-era federal cuts—the highest since 2008, with DC losing 61,795 roles.
The toll that President Trump’s policies have taken on the labor market is most evident in the surge in announced layoffs by U.S. employers. This is due to a combination of factors, including massive federal government job cuts, canceled contracts, and concerns about trade wars. The levels of layoffs have not been seen since the last two recessions.
The number of job cutbacks that were anticipated surged 245% to 172,017 last month, according to global outplacement agency Challenger, Gray & Christmas. This is the biggest amount since July 2020, when the economy was hit hard by the COVID-19 epidemic. Since the Great Recession began sixteen years ago, this was the highest February total.
The majority of layoffs were government employees; Challenger reported 62,242 federal employees whose jobs were terminated across 17 departments. About 62,530 government employees have lost their jobs so far this year, a staggering 41,311% rise from the same time in 2024.
“When mass layoffs occur, it often leaves remaining staff feeling uneasy and uncertain,” mentioned Andrew Challenger, senior vice president of Challenger, Gray & Christmas. “The likelihood that many more workers leave voluntarily is high.”
Funding freezes, substantial budget cutbacks, and the firing of thousands of federal government employees, including scientists and game rangers, have all been consequences of the Department of Government Efficiency (DOGE), which is headed by tech entrepreneur Elon Musk.
The federal government has been characterized by Trump as being excessive and inefficient. Last week, a federal judge temporarily halted the Trump administration’s plans to fire thousands of newly hired employees from the Department of Defense and other federal agencies.
The DOGE crossfire has spread to the commercial sector, affecting federal government contractors as well and causing them to lose their jobs. Last month, businesses sent employees home in part because of tariffs that the White House had either imposed or threatened to impose.
The “DOGE impact” was cited by Challenger as the primary cause of 63,583 layoffs, which affected both federal employees and contractors.
Loss of financing to private nonprofits and other downstream effects of DOGE were responsible for an additional 894 job layoffs that were announced. The federal government’s largest layoffs have occurred in the nation’s capital, which has shed 61,795 jobs this year alone, compared to just 60 in all of 2024.
Retail, technology, services, and consumer goods were among the non-government sectors that saw layoffs. Government purges occurred outside the survey week, so federal layoffs are unlikely to appear in the February jobs report that is due out on Friday.
However, government and contractor jobs may be affected by the recruiting and financing freezes. Reuters surveyed experts and found that nonfarm payrolls rose 143,000 in January, leading to a probable gain of 160,000 jobs. Unemployment will remain at 4.0 percent, according to predictions.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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