September, Third-Quarter Job Cuts Fall; NonFarm Payrolls Report in Doubt Amid Shutdown

01:59 PM EDT, 10/02/2025 (MT Newswires) -- US job cuts fell in September and the third quarter sequentially, Challenger Gray & Christmas said Thursday, while an ongoing federal government shutdown could delay the release of the official jobs report for last month.

US-based employers announced 54,064 job cuts last month, down 37% month on month and 26% annually, the global outplacement firm said. In the September quarter, planned layoffs reached 202,118, the highest third-quarter tally since 2020 and down 18% sequentially. Employers have so far announced 946,426 job cuts this year, up 55% year over year and the highest year-to-date total since 2020, the data showed.

"It's very likely job cut plans are going to surpass a million for the first time since 2020 and for the ninth time in our series," said Andy Challenger, senior vice president at the firm.

As the federal government shutdown entered its second day, key economic data, including the weekly jobless claims report, was delayed Thursday. The release of the official September nonfarm payrolls report, which was slated for Friday, is also now uncertain.

Employers have announced plans to add 204,939 jobs so far this year, 58% lower than a year earlier and the lowest since 2009, according to the Challenger report.

"Right now, we're dealing with a stagnating labor market, cost increases, and a transformative new technology," the Challenger executive said. "With (Federal Reserve) rate cuts on the way, we may see some stabilizing in the job market in the fourth quarter, but other factors could keep employers planning layoffs or holding off hiring."

Markets widely expect the US central bank to deliver another 25-basis-point interest rate cut later this month, according to the CME FedWatch tool. In September, the Federal Open Market Committee lowered rates by a quarter percentage point, noting increased downside risks to employment and signaling further policy easing later this year.

On Wednesday, Automatic Data Processing (ADP) said US private jobs decreased by 32,000 last month as employers remained "cautious" with hiring.

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