As is customary on the first Friday of the month, investors and analysts typically await the release of the U.S. Nonfarm Payrolls (NFP) report. However, due to the record-length federal government shutdown, this crucial labor market data is once again likely to be delayed. This marks yet another month in which the market must operate without essential employment figures, waiting patiently for the political impasse to end.
Despite the absence of official government reports, alternative sources are sending worrying signals. According to the latest Challenger report released yesterday, the U.S. labor market came under heavy pressure in October 2025. Announced job cuts totaled 153,074 — the highest October figure in more than 20 years. The scale of layoffs is nearly three times higher than in October 2024. The last time such levels were recorded in October was in 2003, highlighting the severity of the current downturn.
The technology and logistics/warehouse sectors were hit hardest, as companies continue to adjust to post-pandemic realities and rapid technological transformation. With the fast adoption of artificial intelligence and automation, many analysts are comparing today’s shift to the mobile revolution of the early 2000s. Moreover, companies face rising operational costs and weakening demand from consumers and businesses, prompting cost-cutting measures. Many firms are eliminating managerial positions and correcting over-hiring seen during the pandemic.
Among the largest layoffs announced were:
- Amazon: 14,000 job cuts (mostly office roles),
- Target: 1,800 positions (8% of its corporate staff),
- Paramount Skydance: 1,000 roles,
- Additional layoffs were announced by Starbucks, Delta Air Lines, CarMax, Rivian, Molson Coors, and UPS — which cut 34,000 operational jobs, over 70% more than initially planned.
In total, layoffs announced in 2025 have already exceeded one million, making this the most challenging year for employment since the pandemic. Meanwhile, corporate hiring plans have dropped to their lowest level since 2011, and seasonal hiring — typically ramping up at year-end — is at its weakest since at least 2012. An increasing number of people are struggling to find new jobs, adding to labor market anxiety.
Despite the grim data, labor market reports are not entirely one-sided. According to ADP, private-sector employment rose by 42,000 in October, suggesting some stabilization after two months of declines. Meanwhile, Revelio Labs reported a total workforce reduction of 9,000, driven mainly by cuts in the public sector.
These mixed signals reveal a disconnect between underlying trends and policymakers’ assessments. Federal Reserve Chair Jerome Powell continues to describe the situation as a “very gradual cooling” of the labor market. In contrast, JPMorgan CEO Jamie Dimon, commenting on AI’s impact, noted that while automation could ease workloads, it may also create new roles — leading him to redeploy staff rather than resort to mass layoffs.
Despite isolated positive indicators, October data confirms that the U.S. labor market is entering a clear slowdown phase, driven primarily by automation, cost pressures, and a correction following the hiring boom during the pandemic years.
Source: ceo.com.pl
