US Private Sector Job Cuts Climb in May

According to the Challenger, Gray & Christmas (CG&C) Job Cut Announcement Report released on Thursday, US-based employers announced 97,006 job cuts in May, a 16.3% increase from April’s 83,387 cuts. Year-over-year, announced cuts were up 3.4% from 93,816.

CG&C noted that May’s total was the highest for the month since 2020, when 397,016 job cuts were announced during the height of the pandemic. It also marked the third consecutive monthly increase, with announced layoffs rising from 48,307 in February to 97,006 in May.

Job cuts in May were widespread, broken down as follows:

• Technology: 38,242 job cuts; 123,653 announced year-to-date.
• Transportation: 6,909 job cuts; 40,388 year-to-date.
• Services: 6,268 job cuts; 17,065 year-to-date.
• Health care/products manufacturing (including hospitals): 30,414 job cuts announced year-to-date.
• Pharmaceuticals: 5,045 job cuts; 12,485 year-to-date.
• Fintech: 5,731 job cuts, with many citing AI as a factor.
• Government (federal, state, and local): 4,499 job cuts; 15,918 year-to-date.
• Media: 436 job cuts; 3,390 year-to-date.

Hiring Plans

Through the first five months of 2026, employers have announced plans to add 80,472 jobs, up modestly from the 79,741 announced during the same period in 2025. Hiring announcements remain historically low by pre-pandemic standards.

Technology led May hiring plans with 11,250 announced positions, followed by electronics with 3,158 and insurance with 1,435. The energy sector announced 800 new jobs, its strongest month since October 2025.

Year-to-date, automotive leads all industries with 12,258 hiring plans, followed by entertainment/leisure (8,796), aerospace/defense (7,676), and government (7,368).