In May, the US witnessed nearly 100,000 layoffs, a 47% rise from the previous year, with technology and federal sectors leading due to economic pressures and AI-driven workforce changes. While the unemployment rate remained steady at 4.2%, tech companies announced over 10,000 layoffs, contributing to a total of over 74,000 for 2025, up 35% from last year. Despite these cuts, job growth persists in specific areas like cloud services, even as overall tech employment dropped by approximately 131,000 positions. The job market remains challenging amid economic uncertainty.
"Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces. Companies are spending less, slowing hiring, and sending layoff notices."
"Uneasiness continues to weigh on tech hiring. The unemployment rate for tech jobs in May was 3.4%, roughly in line with April's 3.5%"
"Tech sector companies added a modest 1,571 net new employees in May, with job growth in cloud infrastructure and tech services offset by reductions in telecommunications."
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