In 2025, the United States has faced a significant wave of job losses, with over 1 million positions cut across various industries, marking one of the toughest labor markets in decades. According to reports by Challenger, Gray & Christmas, October alone witnessed the highest number of layoffs for the month since 2003, totaling 153,074 jobs—a sharp 183% increase from September and 175% higher than October 2024. This surge in layoffs is largely driven by sectors like technology and warehousing, where employers are rapidly adopting artificial intelligence (AI) to reduce costs and replace human labor.
The rising unemployment has caused tension and frustration nationwide, with many Americans attributing the difficult job market to foreign workers, particularly those holding H-1B visas. The perception is that these foreign professionals are taking job opportunities away from native-born workers. Meanwhile, both American citizens and H-1B or OPT visa holders are finding it increasingly challenging to secure employment.
Immigration policies have tightened significantly since the Trump administration, contributing to the crisis for immigrant workers. The introduction of a hefty $100,000 fee for H-1B visa applications and additional restrictions have caused companies to hesitate in hiring foreign talent. This has compounded job insecurity and delayed hiring processes for many non-U.S. citizens. As these restrictive policies continue, immigrant workers face growing difficulties in finding stable employment in the American job market.
Overall, the year’s job losses reflect a combination of technological advances, economic caution, and policy changes. The “DOGE Impact,” related to the Department of Government Efficiency’s structural cuts, accounts for a substantial portion of government-related layoffs, with ripple effects across contractors and nonprofits. While AI is a major disruptive force, declining consumer spending and rising costs also push employers toward workforce reductions. As federal data collection is hampered by the ongoing government shutdown, private-sector reports remain crucial for tracking employment trends.
