Business representatives sit at a table during the Harlem Career Fair hosted by Congressman Jordan Wright on December 10, 2025 in New York City.
Spencer Pratt | Getty Images
The number of announced layoffs fell sharply in December, hitting a 17-month low in a sign that the labor market may at least be stabilizing, consulting firm Challenger, Gray & Christmas reported on Thursday.
The number of planned layoffs for the month was 35,553, a 50% decrease from November and an 8% decrease compared to the same period last year. This was the lowest total since July 2024 in a year dominated by large-scale layoffs and concerns about the employment situation.
Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, said: “December has typically been a slow month, but combined with increased hiring plans, this is a positive sign after a year of significant layoff plans.”
For the full year, employers announced more than 1.2 million layoffs, an increase of 58% from a year ago and the highest level since 2020, when the pandemic began. Even if December’s levels were flat, this was the worst fourth quarter since 2008.
The company also announced plans to hire 10,496 employees, up nearly 16% from November and 31% from a year ago.
Challenger’s numbers reflect a significant increase in layoffs this year, but that doesn’t show up in government statistics.
The number of new weekly unemployment insurance claims has remained roughly stable throughout the year, with occasional spikes. In the latest reporting period, the number of insurance claims was 208,000. The four-week rolling average of applications is the lowest since April 27, 2024, according to the Labor Department.
However, employment is also stagnant, with average monthly salary growth of only 55,000 people. Job growth is expected to total 73,000 jobs in December, according to the Dow Jones Consensus. The report is scheduled to be released on Friday.
