U.S. AUG Challenger Job Cuts Actual 85.98K, Previous 62.08K.

U.S. AUG Challenger Job Cuts Actual 85.98K, Previous 62.08K.

September 02, 2025

U.S. Challenger job cuts, a measure of planned layoffs, surged to 85,980 in August 2025, according to data released by the Labor Department's Bureau of Labor Statistics. This figure represents a significant increase from the previous month's 62,080, indicating a potential slowdown in the labor market. The rise in job cuts comes amidst broader economic uncertainties, including concerns over fiscal sustainability and long-term inflation [1].

The surge in job cuts is a stark contrast to the recent recovery seen in Wall Street stocks, which posted muted gains on Wednesday. The technology conglomerate Alphabet (GOOGL.O) jumped around 9%, bolstered by a favorable antitrust ruling, while the broader indices dipped and rose accordingly [1]. However, the job market data may have contributed to a selloff in long-term global government bonds, sending Japan's borrowing costs to record highs and rattling investors in Europe [1].

The global bond market's reaction to the job cuts underscores the broader economic concerns. The 30-year Japanese government bond yield hit an unprecedented 3.28% on Wednesday, a day after similar selloffs in British gilts, U.S. Treasuries, and Canadian bonds [1]. Deutsche Bank CEO Christian Sewing attributed the selloff to a lack of economic reforms to address increasing debt, suggesting that political instability and the absence of reforms could exacerbate the trend [1].

The U.S. Treasury yields dropped on Wednesday following the job openings report, but the 30-year U.S. Treasury yield briefly rose above 5% during Asia trade and last stood at 4.9% [1]. The gap between 2-year and 30-year U.S. government bond yields stands at about 129 bps, around its highest since December 2021, while the comparable measure in Britain is the highest since 2017 [1].

Despite the job cuts, European stock markets remained unscathed, with traders pinning their hopes on an anticipated U.S. rate cut later this month. The Europe's STOXX index (.STOXX) rose 0.66%, while Japan's broad Topix share index (.TOPX) closed almost 1.1% lower and MSCI's broad index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.4% [1].

Oil prices settled down more than 2% on Wednesday ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production targets in October. Brent crude settled $1.54, or 2.23%, lower at $67.60 a barrel while U.S. West Texas Intermediate crude lost $1.62, or 2.47%, to $63.97 a barrel [1].

References:
[1] Reuters. (2025, September 3). Global markets update. Retrieved from https://www.reuters.com/world/china/global-markets-update-6-2025-09-03/