US employers announced 33,429 job cuts in July, the lowest monthly total in two years. Layoffs fell 27% from June and were 46% lower than in July 2025, pointing to continued resilience in the labor market despite ongoing structural changes.
Artificial intelligence remained the leading driver of job reductions for the fifth consecutive month, accounting for nearly 11,000 announced layoffs. The figures suggest companies are continuing to restructure their workforces as automation becomes more widely adopted.
The technology sector recorded the highest number of job cuts, with nearly 9,900 positions eliminated. Financial services, government, and the broader services sector also reported notable reductions.
From January through July, announced job cuts totaled 477,033, down 41% compared with the same period last year. Technology remained the hardest-hit industry, followed by transportation, healthcare, services, and government.
Despite ongoing layoffs, hiring plans showed signs of improvement. Employers announced more than 16,000 new positions in July, marking the strongest July hiring total since 2022. The data suggests that while AI continues to reshape workforce needs, companies are still actively creating new jobs in other areas.
Global markets traded with a risk-on tone as easing Middle East tensions and weaker U.S. labor data reduced expectations for aggressive Federal Reserve tightening.
Global markets traded with a cautious risk-on tone as easing geopolitical tensions and lower oil prices improved investor sentiment.
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