Something Just Broke: U.S. Employment Tanked In June, 744,308 Job Cuts Have Been Announced So Far This Year, And Retail Layoffs Are Up 255%

Michael Snyder is the publisher of , The American Dream Blog and The Truth

What in the world just happened to the job market?  The unexpectedly bad numbers that have just come in have truly been a shock to many of us.  Yes, we knew that conditions were getting worse during the early stages of this year.  In fact, the Federal Reserve Bank of New York has publicly admitted that the labor market “deteriorated noticeably” during the first quarter of 2025.  But now it is becoming clear that our economic slide is threatening to become an economic avalanche.

The U.S. economy needs to add approximately 150,000 jobs a month just to keep up with population growth.  Unfortunately, the latest monthly report from ADP shows that the U.S. economy actually lost jobs last month.  Private sector employment dropped by 33,000 in June, and that was the very first decline that we have witnessed since 2023…

Private sector hiring shrunk dramatically last month in a worrying sign for the the US economy.

Private payrolls shed 33,000 jobs in June, but analysts had expected them to add 100,000, the latest ADP figures revealed.

The worrying data – the first decrease since 2023 – suggests the US economy could be a lot less resilient than investors have been hoping.

There is no way to spin this to make it look good.

The labor market has gotten much tighter, and large companies all over the nation are trimming their payrolls right now.

In particular, service jobs are being axed at a very alarming rate…

The bulk of job losses came in service roles tied to professional and business services and health and education, according to ADP. Professional/business services notched a decline of 56,000, while health/education saw a net loss of 52,000.

Financial activity roles also contributed to the month’s decline with a drop of 14,000 on balance.

Personally, I believe that the numbers that we get from ADP are far more accurate than the highly manipulated numbers that we get from the federal government.

But I also believe that the most accurate picture of the labor market comes from the monthly report that is released by Challenger, Gray & Christmas.  According to the latest report, U.S. employers announced a total of 744,308 job cuts during the first half of this year.  The last time that we saw a larger figure was during the early days of the pandemic in 2020…

Layoffs across the U.S. this year have climbed to their highest level since the pandemic slammed the economy in 2020, new labor data shows.

In the first half of 2025, companies announced 744,308 job cuts nationwide, the highest tally since the first six months of 2020, when employers cut nearly 1.6 million jobs in response to COVID-related disruptions, according to outplacement firm Challenger, Gray & Christmas.

In 2020, we could blame the lockdowns for the layoffs.

But this time around, there are no lockdowns.

Retailers are being hit particularly hard.  According to Challenger, Gray & Christmas, retail job cuts during the first half of 2025 were 255 percent higher than they were during the first half of 2024…

Retailers have eliminated nearly 80,000 jobs this year, up 255% from the first half of 2024.

“Retailers are one of the hardest hit business sectors by tariffs, inflation and uncertainty,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement. “If consumer spending continues to fall, it could mean more job losses in this industry.”

When I first started using the term “retail apocalypse”, a lot of people thought that I was exaggerating.

Does anyone out there want to tell me that I am exaggerating now?

Day after day, more big names go bankrupt.

In fact, we just learned that Del Monte Foods has filed for Chapter 11 bankruptcy…

Del Monte Foods kicked off efforts to pursue a sale as it filed for Chapter 11 bankruptcy proceedings in the US on Tuesday under an agreement with certain key lenders, the company said in a statement.

The company has secured $912.5 million in financing to support itself through the proceedings, it said, adding that it intends to remain open and continue operations throughout the bankruptcy.

The 139-year old company hosts names like canned fruits and vegetables brand Del Monte, College Inn, under which it sells broth and stocks, and tea brands like Joyba.

I had no idea that they were in trouble.

Of course even companies that are thriving are making cutbacks right now.

On Wednesday, Microsoft confirmed that it will be laying off approximately 9,000 more workers…

Microsoft is kicking off its fiscal year by laying off thousands of employees in the largest round of layoffs since 2023, the company confirmed Wednesday.

In an ongoing effort to streamline its workforce, Microsoft said as much as 4%, or roughly 9,000, of the company’s employees could be affected by Wednesday’s layoffs.

This latest round of layoffs comes in the aftermath of a round of layoffs in May and a round of layoffs in June…

Wednesday’s move follows two waves of layoffs in May and June, which saw Microsoft fire more than 6,000 employees, almost 2,300 of whom were based in Washington.

During May’s round of layoffs, Microsoft emphasized that it wanted to flatten management layers. But data from Washington state showed only about 17% of the cuts in Redmond were designated as managers.

Why is Microsoft doing this?

They are supposed to be one of our most successful companies.

Speaking of successful tech companies, it is being reported that Amazon will be conducting “brutal workforce cuts”…

Amazon’s CEO has announced brutal workforce cuts as the company increases its use of Artificial Intelligence.

Amazon boss Andy Jassy said he plans to reduce the company’s corporate workforce over the next few years as AI will make certain roles redundant.

Jassy told employees in a note seen by the Wall Street Journal that AI was a once-in-a-lifetime technological advancement and it has already transformed how Amazon operates.

If our largest and most valuable companies are ruthlessly slashing workers, what does this say about our economy as a whole?

Other corporate giants such as Google, UnitedHealthcare and Nissan are reducing workforce levels by offering buyouts to their employees…

In the private sector, Google, UnitedHealthcare and Nissan, among others, have offered buyouts to U.S. workers this year.

Buyouts can sound tempting. A five-figure severance package might be the most money a worker has ever seen in one paycheck. But it’s also the last paycheck your employer will give you.

“It’s like lottery winners. Some people think the money lasts longer than it does,” said Donna Walton, wealth strategist at TD Wealth.

A couple of years ago, corporate America was engaged in a hiring frenzy.

But now the environment has completely changed.

We all need to brace ourselves for what is ahead, because it appears that things will get even more challenging during the months to come.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com.  He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

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