U.S. job cuts drop sharply while holiday hiring swells

What happened in October

Challenger, Gray & Christmas counted 43,994 planned layoffs last month, a steep 71% drop from October 2023, when cuts hit their highest for that month in more than 20 years. At the same time, employers outlined intentions to bring on nearly 445,000 workers, a 57% jump from a year earlier and the strongest October hiring plan since at least 2009.

Seasonal hiring is doing the heavy lifting

The pickup in hiring plans was entirely about gearing up for the holiday shopping rush. Amazon said it will add 300,000 workers, and United Parcel Service plans to take on 100,000. By Challenger's count, Amazon alone makes up almost two thirds of the seasonal headcount companies have said they will add.

The timing is shifting too, with more announcements landing in October instead of September, and the field has narrowed, with only five companies unveiling seasonal plans this year compared with 11 in 2025. "Seasonal employers are staggering their announcements and waiting longer to see how the season shakes out before they commit to numbers," said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas Inc. "They are not cutting deeply, but they are not committing to permanent headcount, either. Seasonal roles give companies the capacity they need for the holidays with an end date built in."

Shifts in hiring can subtly reshape sectors and investor opportunities over time. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

The broader jobs picture

Challenger's data points to a labor market with limited layoffs but not a surge in permanent opportunities. Market and economic conditions were the top reason cited for October job cuts, overtaking artificial intelligence as the main driver of reductions this year. Recent readings also show some employers are wary of expanding headcount because costs are high.

Why it matters for your portfolio

On Friday, investors will get another look at demand and hiring as the government's October jobs report is projected to indicate payrolls rising by 65,000 and the unemployment rate at 4.2%. In plain English: companies are leaning on temporary labor for the holidays rather than locking in permanent staff, a sign of caution that can shape retail, logistics, and consumer-spending trends heading into year end.

Paying attention to evolving labor patterns helps investors spot long term trends. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.