Job Cuts in February 2023 Reach Highest Levels Since 2009

Job Cuts Overview

U.S.-based employers have reported a staggering 172,017 job cuts in February 2023, marking it as the highest month for layoffs since February 2009. This data emerges from an informative report by outplacement firm Challenger, Gray and Christmas.

Significant Trends in Job Losses

This year’s layoffs more than double the 84,638 job cuts from February 2024, indicating a major shift in the labor market. Additionally, February 2023 saw the most job losses of any month since July 2020, which recorded 262,649 layoffs.

• Year-to-date job cuts have reached 221,812, the highest since 2009.
• The government sector led with 62,242 job cuts last month.
• Retail layoffs have spiked with 38,956 announced in February.

Understanding the Government and Retail Context

The report highlights significant losses within the government due to President Trump’s Department of Government Efficiency, which cut 62,530 jobs since January. This represents a remarkable 41,311% increase in compared to the previous year.

Retail job losses closely followed, showing a year-to-date total of 45,375 cuts, translating to a drastic increase of 572% compared to last year. Meanwhile, technology sector layoffs amounted to 14,554, representing a 22% decrease from February last year.

The Labor Department's upcoming jobs report will provide formal insights for February. As noted, confidence in job security appears to be waning among staying employees, with senior vice president Andrew Challenger emphasizing the potential for voluntary departures due to mass layoffs.