Story perspectives

September Sees Highest Layoffs Since Pandemic, Fed Responds

10/20/2025

Summary

Story summary

In September, employers cut 54,064 jobs, the highest number of layoffs since the COVID-19 pandemic.
Bank of America says small businesses are cautious, with hiring down 12.9% quarter-over-quarter.
The Federal Reserve faces challenges balancing inflation and unemployment, worsened by tariffs from President Donald Trump that raise import costs.
As a result, the Federal Reserve may pursue further interest rate cuts in response to the softer job market.

History

Historical Context

The Great Recession, officially lasting from December 2007 to June 2009, resulted in over 8 million job losses in the U.S. and a peak unemployment rate of 10.0% in October 2009. Triggered by the subprime mortgage crisis and the collapse of Lehman Brothers in September 2008, the recession led to significant government interventions, including the $700 billion Troubled Asset Relief Program (TARP) to stabilize the economy.

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Story summary

In September, employers cut 54,064 jobs, the highest number of layoffs since the COVID-19 pandemic.
Bank of America says small businesses are cautious, with hiring down 12.9% quarter-over-quarter.
The Federal Reserve faces challenges balancing inflation and unemployment, worsened by tariffs from President Donald Trump that raise import costs.
As a result, the Federal Reserve may pursue further interest rate cuts in response to the softer job market.

1 / 2