September Job Cuts Hit 43,281, Lowest for the Month Since 2022
Quick answer: U.S. employers announced 43,281 job cuts in September 2026, according to Challenger, Gray & Christmas. That is 18% below August, 20% below September 2025, and the lowest September total since 2022. Hiring plans reached 90,787 but were the weakest for a September since 2011, signaling a cautious holiday hiring season.
Key Takeaways
Announced U.S. job cuts fell to 43,281 in September, down 18% from August and 20% from a year earlier.
Year-to-date layoff announcements total 573,195, down 39% from the first nine months of 2025.
Technology still leads 2026 with 165,925 announced cuts, and artificial intelligence remains the top reason cited this year.
Employers announced plans to hire 90,787 workers in September, the lowest September figure since 2011.
Seasonal hiring is muted, with Spirit Halloween and Michaels announcing 62,000 seasonal roles versus 100,800 a year earlier.
Layoff announcements across the United States slowed again in September, but employers are also holding back on adding staff ahead of the holidays. Outplacement firm Challenger, Gray & Christmas reported on Thursday, October 1, that U.S.-based companies announced 43,281 job cuts last month, the smallest September tally since 2022.
The number fell 18% from August's 52,881 and 20% from the 54,064 cuts announced in September 2025. Yet the same report showed seasonal hiring plans running well behind normal, a mix that points to a labor market where companies are neither shedding nor adding workers aggressively.
How many layoffs have been announced in 2026 so far?
Through the first nine months of the year, employers announced 573,195 job cuts, a 39% decline from the 946,426 recorded over the same stretch of 2025. Much of that gap reflects last year's heavy government reductions; with the government sector excluded, announcements are still down 15%, at 550,185 compared with 646,671.
Challenger said this is the lowest January-through-September total since 2022 and the seventh month this year in which cuts came in below the same month a year earlier. For the third quarter alone, planned layoffs totaled 129,591, which is 43% lower than the second quarter and 36% lower than the third quarter of 2025.
Which industries are cutting jobs?
Technology remains the biggest source of layoffs. Tech companies announced 10,799 cuts in September, a 77% jump from August, and 165,925 for the year so far, up 54% from the same period last year. The sector accounts for 29% of all announced cuts in 2026, more than any other industry.
Other sectors stood out last month:
Food: 7,326 cuts, including 5,396 from Washington orchards and agricultural employers that filed WARN notices citing weaker demand.
Non-profit: 4,742 cuts, the sector's highest monthly figure of 2026.
Services: 3,306 cuts, with 1,116 tied to lost contracts.
Transportation: 2,151 cuts, bringing its yearly total to 44,430, up 190% from 2025.
Health care and products: 1,780 cuts and 37,417 for the year.
The picture is far from uniform. Of the 30 industries Challenger tracks, 21 have announced fewer cuts than at this point last year. Government is down 92%, retail is down 83% to 14,434, and warehousing is down 53%. Increases are concentrated in technology, transportation, fintech and food.
Is AI still driving job cuts?
Yes, at least for the year as a whole. Artificial intelligence was cited for 3,961 cuts in September, about 9% of the monthly total and fifth among reasons. Across 2026, however, AI has been linked to 120,136 announced cuts, roughly 21% of the total, making it the leading reason year to date.
In September specifically, market and economic conditions topped the list with 8,789 cuts, followed by closings with 7,719. Cuts attributed to falling demand reached 6,515, the highest monthly count for that reason since February 2023, while restructuring accounted for 6,243.
Why are employers holding back on hiring?
Companies announced plans to hire 90,787 workers in September, a big rise from August's 12,325 as seasonal recruiting began. That figure is still 23% below September 2025 and the lowest for the month since 2011. Retailers drove most of it, with 65,150 announced hires, followed by aerospace and defense and utilities.
Seasonal staffing is noticeably thinner. Spirit Halloween and Michaels together announced 62,000 seasonal hires, compared with 100,800 a year ago. Year to date, announced hiring plans stand at 210,612, just 3% above the 204,939 announced through September 2025, a gap that narrowed sharply after hiring had run well ahead of last year's pace through August.
Andy Challenger, the firm's chief revenue officer, described the mood as a "wait-and-see period," pointing to high energy costs, the uncertain war in Iran, a possible rate hike that could raise the cost of hiring, and likely increases in healthcare costs. He said the expected holiday hiring surge has not shown up, which suggests employers are taking a cautious approach.
What happens next?
The Challenger figures track announced plans, not actual separations, so they are best read alongside official government data. Employers' holiday hiring announcements over the coming weeks will reveal whether the seasonal slowdown persists.
What this means for you
Fewer layoffs generally mean more stability for people who already have jobs, but slow hiring means openings may take longer to land. Here is how to respond:
Seasonal job seekers: apply early. With fewer holiday roles announced, retail and warehouse positions may fill quickly, and retail still accounts for most new hiring plans.
Tech workers: the sector leads in cuts, so keep your resume current, build AI-related skills, and widen your search to industries that are still hiring tech talent.
Workers in food, transportation or non-profits: watch for WARN notices from your employer and learn your state's notice and unemployment rules.
Everyone: employers are cautious rather than cutting, so negotiating for training, flexibility or internal moves may be more realistic than relying on a fast job switch.
Frequently Asked Questions
How many job cuts were announced in September 2026?
U.S. employers announced 43,281 job cuts in September 2026, according to Challenger, Gray & Christmas. That is down 18% from August and 20% from September 2025, and the lowest September total since 2022.
Which industry has the most layoffs in 2026?
Technology leads with 165,925 announced cuts through September, up 54% from a year earlier. Transportation, health care and products, consumer products and services follow.
How many job cuts have been blamed on AI in 2026?
Artificial intelligence has been cited in 120,136 announced job cuts so far in 2026, about 21% of the total. That makes AI the leading reason year to date, although it ranked fifth in September.
Are companies hiring for the 2026 holiday season?
Employers announced plans to hire 90,787 workers in September, mostly in retail, but that is the lowest September total since 2011. Spirit Halloween and Michaels announced 62,000 seasonal hires, down from 100,800 last year.
Does the Challenger report count actual layoffs?
No. Challenger, Gray & Christmas tracks job cuts and hiring plans that employers announce, so the figures reflect plans rather than completed separations. It is published by a private outplacement and executive coaching firm.
Sources
This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published October 1, 2026. We update stories when new verified information becomes available.