Q3 planned layoffs by US employers totaled 202,118, the highest Q3 total since 2020

Q3 planned layoffs by US employers totaled 202,118, the highest Q3 total since 2020

In the third quarter of 2025, US employers planned to lay off a record 202,118 workers, marking the highest Q3 total since 2020. This significant increase in planned layoffs underscores the ongoing economic uncertainties and shifts in the job market.

The surge in planned layoffs can be attributed to various factors, including the impact of inflation, geopolitical tensions, and the ongoing transition towards a more automated and technology-driven workforce. Companies across sectors, from manufacturing to technology, have cited these challenges as reasons for their workforce reduction plans.

Analysts have noted that while the overall job market remains robust, the increase in planned layoffs indicates a potential slowdown in hiring. The tech industry, in particular, has seen a significant number of layoffs, with companies such as Meta and Amazon announcing substantial workforce cuts .

Meanwhile, the housing sector has also been affected, with KB Home (KBH) reporting a decline in sales but stronger-than-expected profitability. The company attributed its third-quarter results to improvements in construction efficiency and disciplined pricing. Despite the challenges, KB Home continues to transition towards a higher mix of built-to-order homes, which could yield higher margins .

The automotive industry, represented by Toyota Motor, has shown resilience. Toyota Motor's North American unit saw a 16% rise in Q3 auto sales, driven by strong pickup truck and car sales. The company is navigating tariffs on certain models, but it continues to focus on market trends rather than raising prices .

The economic indicators suggest that while the job market remains dynamic, the increased layoff plans indicate a period of uncertainty. Investors and financial professionals should closely monitor these trends and their potential impact on various sectors.