• U.S. layoffs exceeded 153,000 in October, the highest in over 20 years.
• Tech and retail sectors led the job cuts amid rising AI adoption and cost reductions.
• Year-to-date job cuts have reached 1.1 million, the most since 2020.
• Employers are shifting from a "no hire, no fire" environment to significant job reductions.
• The ongoing U.S. government shutdown has delayed official labor market reports.

In October, U.S. employers cut over 153,000 jobs, marking the largest reduction for that month in more than 20 years. This surge, reflecting a 175% increase from the previous year, is primarily driven by cost-cutting measures and the adoption of artificial intelligence across several industries, particularly in tech, retail, and services, according to Reuters, CBS News, and HuffPost.

Employers have announced nearly 1.1 million job cuts this year, the highest figure since 2020, when pandemic shutdowns severely impacted employment rates. Notably, individual companies reported larger layoffs in October, with around 450 separate plans for job cuts, distinctly up from under 400 in September, according to Reuters, CBS News, and HuffPost.

The transition in the labor market from a "no hire, no fire" policy to aggressive cost-cutting practices is significant. Companies are responding to changes in consumer behavior and corporate spending, exacerbating the layoffs driven by the growing implementation of AI technologies, as highlighted by analysts, including Andy Challenger from Challenger, Gray & Christmas, according to Reuters and CBS News.

Moreover, the ongoing U.S. government shutdown is further complicating the situation as it has delayed official employment data from the Department of Labor, leaving private economic data at the forefront for financial analysts and investors focused on the evolving job market, according to Reuters, CBS News, and HuffPost.