Layoff announcements slowed again in September. U.S.-based employers announced 43,281 job cuts, down 18 percent from the 52,881 announced in August and down 20 percent from the 54,064 announced in September 2025, according to outplacement firm Challenger, Gray & Christmas. The firm’s monthly report, released October 1, calls it the lowest monthly total since 2022, when the figure was 29,989.
Challenger counts job cuts that employers announce, not separate government jobless claims. Andy Challenger, the firm’s workplace expert and chief revenue officer, said “companies are in a wait-and-see period right now,” and that “we’ve seen layoff activity subside over this year, and September continues to illustrate this point.”
For workers, the useful reading is where the cuts are concentrated. A lower national total can sit alongside a bad month in one industry, and September had several: technology announced 10,799 cuts, up 77 percent from 6,103 in August, and food-sector employers announced 7,326. A worker in either field faces a different market than the headline total implies.
October’s count is the next one due from Challenger, and it will show whether September’s 43,281 was a low point or only a pause.
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The year-to-date count is down 39 percent
Through September, employers have announced 573,195 job cuts, down 39 percent from 946,426 over the same nine months of 2025. Much of that drop is government. Excluding government, announced cuts total 550,185 against 646,671 last year, a decline of 15 percent. Challenger reports government cuts are down 92 percent from last year’s level.
The quarter tells the same story. Third-quarter announcements totaled 129,591, down 43 percent from 226,242 in the second quarter and down 36 percent from 202,118 in the third quarter of 2025. September was the seventh month of 2026 with fewer cuts than the same month a year earlier, and the nine-month total is the lowest since 2022, when it was 209,495.
Why employers said they were cutting
Market and economic conditions was the top reason in September, cited for 8,789 cuts, about 20 percent of the month. Closings followed with 7,719, demand downturn with 6,515, restructuring with 6,243, and artificial intelligence with 3,961, the fifth-most cited reason. The demand-downturn figure is the highest monthly total since February 2023, when it was 7,770.
For the year, the order is different. Artificial intelligence leads all reasons, with 120,136 cuts, about 21 percent of the total. Market and economic conditions is second at 114,124, closings account for 99,092, and restructuring for 79,892.
Technology, food and the Washington orchards
Technology leads every industry with 165,925 cuts through September, up 54 percent from 107,878 a year earlier and 29 percent of the 2026 total. Transportation is second at 44,430, up 190 percent from 15,329, followed by health care and products at 37,417, consumer products at 30,652 and services at 30,084.
Food-sector cuts reached 7,326 in September, the second straight month above 7,000. Washington State orchards and agricultural employers accounted for 5,396 of them, all filed through state WARN notices that cited falling demand. Non-profit employers announced 4,742 cuts, the most of any month this year and up from 672 in September 2025. Retail cuts stand at 14,434 for the year, down 83 percent from 86,233.
Hiring plans slipped as well
Employers announced plans to hire 90,787 workers in September, up from 12,325 in August but down 23 percent from 117,313 a year earlier. It was the lowest September total since 2011. Retail accounted for 65,150 of the September hires, aerospace and defense for 5,300 and utilities for 4,200.
Seasonal hiring is the weak spot. Only Spirit Halloween and Michaels have announced seasonal plans so far, together about 62,000 workers, against 100,800 announced by seasonal employers last September. For the year, planned hiring stands at 210,612, up 3 percent from 204,939, but that lead has narrowed as seasonal announcements lagged. Challenger said that “hiring plans are up over the year, but we’re not seeing the surge of hiring plans that come with the holiday season.”
If a layoff notice lands: the unemployment filing
Workers who lose a job file with the unemployment insurance program of the state where they worked, according to the Labor Department’s unemployment insurance page. Depending on the state, claims can be filed in person, by phone or online, and the department advises contacting the state program as soon as possible after becoming unemployed.
The page says each state sets its own eligibility rules, and that claimants generally must be unemployed through no fault of their own. Wages in a base period, usually the first four of the last five completed calendar quarters, count toward eligibility. It generally takes two to three weeks after a claim is filed for the first benefit check to arrive.
The department says to give complete and correct information so a claim is not delayed, including addresses and dates of former employment. Workers who want the industry context behind an announcement can check Challenger’s full September report, which carries the totals cited here.
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This article was produced with AI assistance and reviewed by The Financial Wire’s editorial team.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
