#USJobsSlump

The U.S. job market took a hit in February 2025, with announced layoffs surging by 245% compared to last year. A big chunk of these cuts—over 62,000 jobs—came from the federal government, as agencies made major reductions under cost-cutting efforts led by the Department of Government Efficiency (DOGE), spearheaded by Elon Musk.

Despite this, private-sector layoffs remain relatively low, and the unemployment rate is still holding steady at 4%. However, economists warn that the ripple effects of these government job losses, combined with other policies like reduced federal spending and tariffs, could slow down hiring in the coming months.

Because of how employment data is collected, February’s official jobs report might not fully reflect these layoffs, but the impact is expected to show up in the March report. For now, the private sector remains stable, but all eyes are on the long-term effects of these cuts.