U.S. Layoffs Surge 205% in March, Federal Cuts Drive Job Losses

The United States witnessed a substantial increase in announced layoffs in March, primarily attributed to the government's efficiency department's plan. This initiative has led to a chain reaction, resulting in over 4,400 layoffs among employers who rely on federal aid or contracts, with non-profit organizations and healthcare institutions being the most affected.

The total number of layoffs announced by employers in March reached 275,240, marking a 205% increase from the previous year. This figure is the highest since the reporting of layoff plans began in 1989 and the largest since the onset of the pandemic. The federal government accounted for a substantial portion of these layoffs, with 216,215 jobs cut in March alone. Over the past two months, 27 federal agencies have collectively laid off approximately 280,253 employees, representing a 672% increase in layoffs compared to the same period in 2024.

The efficiency department's aggressive "efficiency optimization" approach, similar to the management style of its leader, has been applied across various federal departments. This has led to significant layoffs in Washington D.C., with the city reporting 278,711 layoffs so far this year. The Department of Health and Human Services experienced the most recent large-scale layoffs, with 10,000 employees being let go. Other departments, such as the Department of Veterans Affairs, the Internal Revenue Service, and the Department of the Treasury, are also expected to see substantial job cuts.

The efficiency department's actions have had a ripple effect, leading to additional layoffs among employers reliant on federal aid or contracts. Non-profit organizations and healthcare institutions have been particularly impacted, with over 4,400 layoffs announced. Despite these layoffs, other employment data has not yet reflected the full extent of these job cuts. Weekly unemployment claims have remained within a narrow range since the beginning of the Trump administration, and while wage growth has slowed slightly, it remains positive. Job openings have decreased but are still close to pre-pandemic levels.

The U.S. Department of Labor is expected to release its March employment report this Friday. Economists predict that the number of new jobs added will decrease to 210,000, down from 275,000 in February. The unemployment rate is expected to remain at 3.9%, but given the recent layoff data, this forecast may be overly optimistic.