Job cuts in US hit four-year low, down 41% YoY as hiring plans surge

The American labor market just delivered its most encouraging round of data in years. Announced job cuts in July 2026 fell to 33,429, the lowest monthly total since July 2024, according to outplacement firm Challenger, Gray & Christmas. That represents a 46% decline from the same month last year and a 27% drop from June. Zoom out further and the picture gets even rosier. Year-to-date through July, US employers have announced 477,033 cuts, a 41% reduction from the 806,383 recorded over the same stretch in 2025. Hiring plans tell the other side of the story Firms announced 16,095 new hiring plans in July 2026, the highest volume for this month since 2022 and a 25% increase year-on-year. Tech still leads in cuts, but the composition is shifting The technology sector remains the single largest source of layoff announcements, accounting for 149,023 cuts year-to-date through July. That’s roughly 31% of the national total and a 67% increase compared to the prior year period. Transportation followed at a distant second with 41,748 cuts. AI was cited as a factor in roughly 24% to 33% of monthly job cuts through July. It remains one of the top reasons employers give for workforce changes...