US announced job cuts surge 245% in February on federal government layoffs

American workers’ demobilization operations in February have increased to levels that have not been recorded since the last recession, amid the reduction of the Trump administration’s collective jobs in federal agencies, and canceled contracts and fears of moderate trade war.

A report issued by Global Outplace Challenger and Gray & Christmas said on Thursday that the planned job cuts increased by 245 % in February to 172,017 last month. This is the highest level since July 2020, when the economy has been reeling from the restrictions related to Covid epidemic, and the highest total of February since the great recession in 2009.

It was the largest share of workers’ demobilization in the government, as Challenger announced 62,242 job discounts across 17 different federal agencies. The government delivered nearly 62,530 workers in the first two months of 2025 – an increase of 41311 % compared to last year.

“It seems that the administration wants to reduce more workers, but he ordered the launch of nearly 200,000 employees under observation that was banned by a federal judge,” said Andrew Challenger, Senior Vice President at Challenger, Gray & Crisames. “It remains to see the number of workers will lose their federal government roles.”

The private sector adds only 77 thousand jobs in February, much less than expectations, ADP says

“When the collective demobilization occurs, the remaining employees often leave the uncomfortable and unconfirmed. The possibility that many workers will leave voluntarily.”

Retail dealers also announced 38,956 jobs reduction, for the decline of the total sector to 45,375 for this year. This is a 572 % increase from the 6,751 retail for retail cuts that were announced in the first two months of 2024.

Technology companies are still a pioneering sector to reduce jobs, although they have decreased a year ago. Technology companies announced 14554 jobs in February, bringing the total 22,042 in 2025 – a number of 22 % of the 28218 discounts in the same last period.

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So far in 2025, employers announced 221,812 job discounts-the highest total of year to date since 2009, when the jobs of the jobs 428,099 were planned. This number is 33 % higher than the 166,945 job cuts announced in the same period in 2024.

“Private companies announced plans to rid thousands of jobs last month, especially in the field of retail and technology,” said Challenger. “With the impact of the actions of the Ministry of Governmental efficiency (DOGE), as well as government contracts that were canceled, fear of commercial wars and bankruptcy, job discounts increased in February.”

Regarding the reason that makes companies lowering jobs, the DOGE effect was the main cause and 63,583 workers’ layoffs, whether in the federal workforce or between government contractors.

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Conditions in the market and the economy attributed to 36257 discounts, while bankruptcy was the cause of 35,411 discounts, functions, unity or closure of the factory represented 28,095.

Reuters contributed to this report.