Recession Triggers 1.1 Million Permanent Layoffs by November

Current economic conditions indicate a significant rise in permanent job layoffs, with 1.1 million layoffs recorded by November 2025, according to data from Challenger, Gray & Christmas. This figure marks only the sixth time since 1993 that layoffs have exceeded this threshold.

Current Layoff Trends in 2025

Notably, the technology sector has been the hardest hit, witnessing over 150,000 job cuts. Various other industries—including telecommunications, retail, and food services—are also experiencing substantial workforce reductions, many in the double or triple digits compared to last year.

• Total Announced Layoffs: 1,170,821 through November 2025.
• Percentage Increase: 54% compared to the same period in 2024.
• November Layoffs: 71,321, the highest for that month since 2022.

Analyzing “Forever Layoffs”

Economists note a shift in the nature of layoffs, moving from large-scale reductions to more frequent, smaller layoffs. Daniel Zhao, vice president of Glassdoor, pointed out that the new trend of “rolling layoffs” creates a persistent state of anxiety among employees, as they face ongoing uncertainty about their job security.

This transformation in layoff strategy allows companies to adjust their workforce more discreetly, minimizing the impact on morale typically associated with large layoffs. However, analysts warn that this approach leads to a lingering culture of insecurity, affecting both productivity and workplace atmosphere.

Impacts of AI and Economic Factors

Several factors, including artificial intelligence adoption and restructuring, are driving the current layoff trend. Since 2023, more than 70,000 layoffs have been attributed explicitly to the automation of tasks by AI, as firms reorganize their operations to embrace new technologies.

The Labor Market Disparities

The job market is displaying a “K-shaped” trajectory, where wealthier individuals thrive while lower-income workers face heightened challenges. While large corporations manage to maintain or grow their workforce, small businesses are struggling, evidenced by a job loss of 120,000 positions among small enterprises last month.

ADP’s recent payroll data highlighted that private employers cut 32,000 jobs in November, a downturn primarily driven by smaller firms. In contrast, larger corporations added 90,000 jobs, indicating a divergence in how different business sizes are navigating the economic landscape.

Forecast and Future Considerations

The labor market’s current predicament, characterized by layoff anxiety and sluggish hiring, could reshape workforce dynamics heading into 2026. Analysts suggest that the ongoing “forever layoffs” are part of a broader trend of organizational restructuring.

• Hiring Decrease: Announced planned hires fell by 35% year-to-date.
• Job Seeker Sentiment: Increased anxiety about job security among workers.

As workers adapt to this environment of reduced leverage in negotiations and increased fears of unemployment, many are settling for less desirable job opportunities just to secure a position. The evolving landscape underscores a growing need for employees to navigate a future laden with uncertainty.