US Job Cuts Decline to Four-Year Low Amid Rising Hiring Plans

The American labor market has shown promising signs as announced job cuts in July 2026 dropped to 33,429, the lowest monthly total since July 2024, according to Challenger, Gray & Christmas. This figure represents a 46% decrease from the same month last year and a 27% decline from June 2026.

Year-to-date, US employers have announced 477,033 job cuts, reflecting a 41% reduction compared to the 806,383 cuts reported during the same period in 2025. In contrast, hiring plans have surged, with firms announcing 16,095 new hiring intentions in July 2026, marking the highest volume for this month since 2022 and a 25% year-on-year increase.

While the technology sector remains the largest contributor to layoffs, accounting for 149,023 cuts year-to-date, the overall trend indicates a shift. Transportation follows with 41,748 cuts. Notably, artificial intelligence has been cited as a factor in 24% to 33% of monthly job cuts through July, although restructuring has emerged as the primary reason for workforce adjustments.

Government sector layoffs have also plummeted, with federal and public-sector cuts totaling just 20,752 through July 2026, a significant drop from 292,294 during the same period in 2025, representing a decline of over 90%. This normalization in government cuts has contributed to the overall improvement in labor market statistics.

Looking ahead, early data from August 2026 indicates 52,881 announced cuts, which, while higher than July's low, still suggests a labor market that is stabilizing.