2026.08.0609:37:54UTC+00US Firms Announce the Fewest Job Cuts in Two Years

US-based employers announced 33,429 job cuts in July 2026, the lowest monthly total in two years. This figure was down 27% from June and 46% from July 2025.

For the fifth consecutive month, artificial intelligence was the leading stated reason for layoffs, accounting for 10,970 job cuts in July. The technology sector reported the largest number of cuts at 9,867, followed by financial firms with 3,157, government entities with 2,962, and services companies with 2,581.

From January through July, employers have announced 477,033 job cuts, a 41% decline from the 806,383 cuts recorded in the same period of 2025. Technology leads all industries over this seven-month span, with 149,023 announced layoffs, followed by Transportation with 41,748, Health Care/Products with 34,426, Services with 23,942, and Government with 20,752.

At the same time, employers announced plans to hire 16,095 workers in July, the highest July hiring total since 2022. “Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it,” said Andy Challenger of Challenger, Gray & Christmas.