Layoff pace in December hit lowest level since mid-2024, Challenger says
Business representatives sit at a table at a career fair in Harlem hosted by Assemblyman Jordan Wright on December 10, 2025 in New York City.
Spencer Platt | Getty Images
Announced layoffs fell sharply in December, falling to a 17-month low, consulting firm Challenger, Gray & Christmas reported Thursday; This was a potential sign that the labor market was at least stabilising.
Planned layoffs totaled 35,553 for the month, down 50% from November and 8% from the same period a year ago. That was the lowest total since July 2024, in a year dominated by massive layoffs and concerns about the jobs picture.
“While December was slow overall, this combined with higher hiring plans is a positive sign after a year of high layoff plans,” said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas.
For the full year, employers announced more than 1.2 million cuts, up 58% from a year ago and the highest level since 2020, the year of the pandemic. Despite the quiet December level, this was the fourth-worst quarter since 2008.
The companies also said they plan to hire 10,496 workers, up nearly 16% from November and 31% from the previous year.
While Challenger’s figures reflect a large increase in layoffs this year, this does not appear in government statistics.
Initial weekly unemployment claims have been steady for most of the year, with occasional spikes. The number of requests in the most recent reporting period was shown to be 208,000. The four-week moving average of claims is at its lowest level since April 27, 2024, according to the Labor Department.
But hiring was also poor; monthly payroll increases averaged just 55,000. December employment growth is expected to total 73,000, according to the Dow Jones consensus. This report will be released on Friday.
