By Mark Niquette
Bloomberg News
(TNS)
U.S. companies announced the fewest number of job cuts for any September since 2022, according to data from outplacement firm Challenger, Gray & Christmas Inc.
Employers last month announced 43,281 job cuts, a near 20% decrease from a year earlier. So far this year, planned staffing reductions are down almost 40% from the same nine months in 2025.
At the same time, the report on Thursday showed hiring intentions were muted in September, a month when companies begin gearing up for the end-of-year holiday-shopping season. Employers announced plans to add 90,787 workers, the weakest September hiring intentions since 2011.
“Companies are in a wait-and-see period right now. Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs,” Andy Challenger, the company’s chief revenue officer, said in a release.
“Hiring plans are up over the year, but we’re not seeing the surge of hiring plans that come with the holiday season, which suggests a very cautious approach,” he said. So far this year, hiring intentions are up 3% compared with the same period in 2025.
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The report illustrates steadiness in the labor market, characterized by limited layoff activity and a moderate pace of hiring. The government’s monthly jobs report due Friday is expected to show the unemployment rate held at 4.1% in September. Payrolls are seen rising about 90,000 in the wake of the second-biggest monthly increase since 2024.
According to the Challenger report, the top reason for planned job cuts last month was market and economic conditions. So far this year, however, artificial intelligence has been the most-cited reason, accounting for about 21% of all planned dismissals.
Photo credit: ZSun Fu/Unsplash
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