The 'low-hire, low-fire' economy may be starting to shift with more layoffs—but not more hiring

Layoff and hiring rates have been low for months. That may be starting to change, and not in a good way.

Job cuts announced last month hit their highest January total since 2009, according to a report released Thursday by global outplacement firm Challenger, Gray & Christmas. This is in line with a growing trend of jobs being trimmed across the country.

Challenger’s report, which is based on company announcements of job cuts, showed that U.S.-based employers announced 108,435 job cuts last month, marking an increase of 118% from the 49,795 cuts announced in January 2025, and a 205% increase from the 35,553 job cuts announced in December.

The report also noted last month saw the lowest January hiring level since 2009. The official January jobs report from the Bureau of Labor Statistics comes out next week after a delay due to the brief government shutdown. The previous BLS report showed U.S. job openings dropped to a five-year low in December.

Experts say the broader picture on jobs is still relatively strong when considering metrics like unemployment rates. But that picture doesn’t reflect how people are feeling in the job market, and Challenger’s findings may indicate broader problems in job growth.