Fewer Layoffs, Fewer Hires: What the Challenger September Report Really Shows

Challenger, Gray & Christmas reported on October 1 that U.S. employers announced 43,281 job cuts in September. That is down 18% from August and 20% from September 2025, and the lowest September total since 2022. Through September, announced cuts total 573,195, down 39% from the same period last year. Excluding government, they are down 15%.

Hiring plans told a different story. Employers announced plans to hire 90,787 workers in September, down 23% from a year ago and the weakest September in 15 years. Challenger said the usual early surge in seasonal hiring did not show up. Technology led all industries in September with 10,799 announced cuts.

Note: This story was written with AI assistance and edited by me.

Those are the facts as reported. Everything below is my opinion.

My position: a lower layoff number is not good news for someone looking for work. This looks like a market where companies are holding on to people and not adding new ones.

Low fire, low hire

Andy Challenger described employers as being in a wait-and-see period, pointing to high energy costs, an uncertain war in Iran, a possible rate hike and rising healthcare costs. That sounds right to me. Companies are cautious, so they are not firing in a panic and they are not building teams either.

For people who already have jobs, that feels stable. For people who are between jobs, recent graduates and career changers, it is a very slow market.

The headline number can mislead. A drop in layoff announcements gets read as a recovery. But a recovery shows up in hiring, and September hiring plans were the lowest for the month since 2011 by one outlet's comparison of the same data.

Technology is still the pressure point

Technology cut 10,799 jobs in September, according to the report. That fits what I hear from engineers and hiring managers: companies are keeping smaller teams and asking more of each person.

I would not read too much into one month. Challenger counts announcements, not actual layoffs, and it does not cover every company. It is one signal among several.

Other data, like the government jobs report, measures something different. Look at them together and treat each as a partial view.

What I would do with this

If you are hiring, this is a moment to be selective and fast. Good people are available, but they will not wait through a slow, confusing process.

If you are looking, focus on specific skills and evidence of results. Generic applications get lost when hiring is thin.

If you run a company, resist the urge to freeze everything. Teams that keep investing in the right people through slow periods tend to come out ahead.

And be honest with your team about what you know. Silence in a cautious market makes people assume the worst.

A fair counterpoint

To be fair, there is a hopeful reading. Year-to-date hiring plans total 210,612, up 3% from last year, and announced cuts are far below 2025 levels. The economy is not in free fall. The report describes caution, not collapse. My concern is that caution can last a long time, and the people who suffer most from a slow market are the ones trying to get in or get back in.

I would also remind readers that this report covers announced plans from U.S.-based employers. It is useful, but it is not the same as the government's employment numbers, and one month is not a trend.

The payoff

One quiet month of layoffs does not change a cautious hiring market. Use the slow period to build well. Hiring well has always been the engine in every team I have built. Strong people raise the whole team, especially when the market is slow.

Pick one open role this week and rewrite its scorecard before the market turns. You will hire faster and better when it does.