Layoffs this past January reached their highest level for any January since 2009. U.S. employers announced 108,435 layoffs, which is up 118% from the same month a year ago and 205% from December 2025. Hiring numbers were not encouraging either, with only 5,306 new hires reported—the lowest January total since 2009. The article suggests that layoffs may continue to rise, as the first months of the year are typically the most severe for job losses.
Several large companies have already announced major cuts. Amazon, for example, recently reduced a significant portion of its workforce, shedding about 16,000 mostly corporate jobs. Transportation and technology were the two sectors with the largest losses, largely due to UPS plans to cut more than 30,000 workers and Amazon’s reductions. While it is somewhat expected in transportation—given the surge in delivery drivers in recent years and improvements in automation—it is still striking to see losses of this scale.
With rapid technological growth, fewer workers are needed, and hiring new employees requires time-consuming training. As a result, many companies are combining roles to reduce labor costs. Adding to concerns, job openings fell sharply in December to 6.54 million, the lowest level since September 2020, and are down more than 900,000 since October. Overall, the data point to a weakening labor market, with employers appearing less optimistic about economic conditions heading into 2026.
https://www.cnbc.com/2026/02/05/layoff-and-hiring-announcements-hit-their-worst-january-levels-since-2009-challenger-says.html
Layoffs rising could be an indicator that the labor market is softening even though the unemployment rate has not risen incredibility drastically. Sometimes it could take time for the unemployment rate to rise after large layoffs have occured.
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