New amazing data reveal a 140% layoff in July, with almost half linked to AI and “technological updates”

Not only did the payroll increased by 73,000 in July, below Wall Street estimates, but the revisions also showed that spring had two consecutive months of growth less than 20,000. The unemployment rate increased up to 4.2% against 4.1%, while the active population decreased. New data is also added to this slow cocktail showing a remarkable increase in layoffs in July.

The Challenger Employment Council, Gray & Christmas publishes a monthly “job cup” report and the July edition made for a reading. According to data, employers in the United States announced 62,075 job cuts last month, an increase of 29% compared to June, but a superb increase of 140% in July 2024 and a decisive end of the middle of the summer in the reductions of the workforce. And almost half of these cuts – 49% – were linked to artificial intelligence (IA) and “technological updates”.

The report indicates that these cuts are “much superior to the average for this month since the pandemic” and one of the highest declines in July over the past decade, proof that deep and technology changes are collapsed on the labor market. For the prospect, the average number of job cuts announced in July from 2021 to 2024 was only 23,584. Even against the average of 60,398 of the larger decade, the total of this year is significantly higher.

Titles, including in Fortunehave linked dismissals increasing to the growing adoption of artificial intelligence (AI) in the company, and Challenger Gray is partly agree. A higher impact is the government’s employment reductions due to the Ministry of Government Effectiveness (DOGE), previously with Elon Musk in an ambiguous advice role. A large part of the DOGE cups, of course, is to encourage the growing adoption of AI within the government. “We note the federal budget cuts implemented by DOGE Impact non-profit and health care in addition to the government,” said Andrew Challenger, Vice-President Director and Expert of Work for Challenger, Gray & Christmas. “The AI was cited for more than 10,000 discounts last month, and pricing concerns had an impact on nearly 6,000 jobs this year.”

The effect of AI

Beyond the more than 10,000 jobs in July which were specifically eliminated due to the adoption of the AI, 20,219 additional cuts were allocated to “technological updates”, including automation and new software workflows. Challenger Gray said that this suggests “a significant acceleration of Restructuring linked to AI”.

While the influence of AI dominates the headlines, federal budget cuts – known as “impact Doge” – are another pillar leading the wave of layoffs of this year. The government sector announced 292,294 job cuts this year, most of them at the federal level, while the courts of the light of the green sweeping light. They affected not only direct government roles, but also non-profit organizations and health care thanks to downstream funding losses, totaling 13,056 additional layoffs.

Other economic stressors are still present: market and economic conditions have represented 171,083 discounts of the year, inflation and lower demand closed stores and factories (120,226 layoffs), while restructuring and bankruptcy contributed to 66,879 and 35,641 discounts respectively.

Where the storm storm strokes

Employment cuts are unevenly distributed across the United States, the East Coast has experienced the most spectacular increase from one year to another, increasing 219%, stimulated by federal agency reductions in Washington, DC, as well as steep jumps in states such as New Jersey (+ 362%) and New York (+ 43%). To the west, California was also swilled by 114,676 layoffs (+ 50%). In the south, the job cuts climbed 34% in total, Georgia and Florida having seen tips of more than 70%.

The technology sector is at the top of the losses of the private sector, with 89,251 discounts of the year at the start of the year – a jump to 36% compared to last year – reflecting the disruptive role of the AI and the continuous uncertainty of the work visa. Retail trade has announced 80,487 layoffs so far in 2025, up 249% compared to a year ago, while inflation and prices are growing more stores to reduce or close their doors. The non -profit job cuts are up 413%, with operational assembly costs aggravated by lost federal support. While layoffs in the automotive sector in the automotive sector fell 31% compared to 2024, July saw nearly 5,000 jobs lost due to new prices, its most affected month since the end of last year.

The announced job plans offer little relief: only 86,132 new jobs were planned by American employers until July; This has always remained well below the pre-countryic levels. The technological hiring continues to compete, down 58% from one year to another, with only 5,510 technological positions announced so far in 2025.

For this story, Fortune Used a generative AI to help an initial project. An editor checked the accuracy of the information before the publication.