U.S. employers announced more layoffs in February 2025 than at any time since the early months of the COVID-19 pandemic, according to multiple news reports. As reported by Reuters, last month’s 172,017 job cuts were the most since July 2020, with the federal government accounting for about 62,000 layoffs. The total number of job cuts announced in February represents a 245% increase from January.
Meanwhile, the country saw an increase of 151,000 new nonfarm jobs in February, according to the U.S. Bureau of Labor Statistics (BLS). Although the overall job numbers continued to trend up, anticipated federal government cuts could impact federal spending that goes to private contractors and have a ripple effect across the entire economy. The federal workforce makes up about 2% of the overall U.S. workforce, or just over three million out of a civilian workforce of 170 million.
In recent weeks, economists have expressed concerns that the risk of a recession is rising, and the most recent Consumer Confidence Index report showed the largest monthly decline since August 2021. The report also showed a rise in the number of consumers anticipating a recession over the next 12 months.
Valorie Waldon is Employers Council’s director of Member and Information Services.