Layoffs are down, but employers aren't rushing to hire for the holidays

Layoff plans fell in September to the lowest levels for the month since 2022. But companies don't appear to be rushing to add staff.

US employers announced 43,281 job cuts in September, a 20% drop from September 2025, according to outplacement firm Challenger, Gray & Christmas. Through September of this year, layoff announcements are down sharply compared to last year, dropping 39% overall and 15% excluding government workers.

Technology companies continued to be responsible for the bulk of the latest layoffs, announcing 10,799 cuts in September. Nearly a third of all announced job cuts came from tech companies, leading all other sectors.

"Companies are in a wait-and-see period right now. Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs," Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, said in a statement.

Employers announced plans to add nearly 91,000 workers as seasonal hiring kicks off. But they're being cautious: Those hiring plans are down 23% from last year, the smallest total for September since 2011. Two early seasonal movers, the craft store chain Michaels and the ephemeral Spirit Halloween shops, announced 62,000 total hires this year, down from nearly 101,000 in 2025. Retailers were behind more than 70% of September's hiring plans.

"Hiring plans are up over the year, but we're not seeing the surge of hiring plans that come with the holiday season, which suggests a very cautious approach," Challenger said.

Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.