U.S. Job Market Slows Down Amid Rising Layoffs and Fed Considers Rate Reduction

By late October 2025, the U.S. job market continued to exhibit signs of weakness,

which found that businesses eliminated an average of 2,500 jobs per week over the four weeks ending November 1. This comes after previous data in private sector employment for the four weeks ending October 25. These statistics point to a sustained hiring slowdown, intensifying worries about the economy’s pace as the year draws to a close.

Much of the slowdown in job growth can be traced to major layoffs at leading firms.

and , for example, in October, and Challenger, Gray & Christmas Inc. recorded the highest number of planned layoffs for that month in more than twenty years. These reductions are part of a broader trend, driven by changing consumer habits and efforts to reduce expenses. At the same time, about potential job loss in a Harris Poll conducted in mid-October, highlighting mounting unease over employment stability.

With official government labor data delayed, ADP’s reports have become a key indicator for the job market.

Earlier in the year, a U.S. government shutdown interrupted the publication of crucial economic data, such as the September employment report, a modest gain of 55,000 jobs. Federal Reserve Governor Christopher Waller the labor market’s weakness as a possible reason for a rate cut in December. Waller pointed out that inflation is nearing the Fed’s 2% objective and described the job market as “almost at a standstill,” with unemployment claims rising and wage growth stagnating.

Political debate over job losses is increasingly focused on the role of artificial intelligence.

greater openness about how automation powered by AI could worsen unemployment. This comes as President Donald Trump’s administration faces criticism for its broader economic agenda, including reductions in development aid and infrastructure investment.

The challenges facing the labor market extend beyond the United States. The European Commission

into Amazon and Microsoft under the Digital Markets Act, examining their influence in the cloud computing sector. While these investigations center on competition, they also signal a global regulatory focus on corporate dominance and its broader economic consequences.

At present, ADP’s findings highlight the vulnerability of the labor market, as businesses juggle cost controls with the need to retain staff. As the Federal Reserve considers its next steps, the combined effects of layoffs, regulatory scrutiny, and technological change are likely to shape the economic outlook in the coming months.