recession2026

US Layoffs Surge Past 1.1 Million in 2025: Are Recession Risks Rising?
Are the rising job cuts a signal that the US economy is slowing down? 
New US layoffs news shows that companies are cutting workers at a pace not seen since the pandemic, and this trend is now creating concerns about a possible US recession in 2026.

According to reporting from Challenger, Gray & Christmas, the employers are cutting jobs at the fastest pace since the pandemic, putting pressure on consumer spending, markets, and even crypto sentiment.
In November, companies announced 71,321 layoffs. While this is lower than October, the overall picture is worrying:
US layoffs 2025 total: 1,170,821 job cutsIncrease from last year: +54%Highest workforce reductions by year since 2020
Historically, these levels have appeared only during major economic downturns like 2001, 2008, 2009, and the 2020 lockdown period. These were all recession-linked years, raising questions about a possible US recession 2026.
What’s adding more fuel to the situation is November job cuts which are above 70,000 – extremely rare and have happened only twice since the US recession 2008 (also known as the great recession), highlighting how unusual 2025 has become.
Which Sectors Are Cutting the Most Jobs?
Several major industries are driving the surge in US layoffs 2025:
Telecom
15,139 terminations in November (mainly due to Verizon restructuring)268% higher than last yearBiggest monthly total since April 2020
Tech
12,377 terminations in November153,536 tech job cut in 2025, the highest among all sectorsCompanies cite automation, cost-cutting, and slow demand
Retail
91,954 dismissals so far in 2025139% increase from last yearReflects weaker consumer demand and tariff-related costs
Food & Services
More than 100,000 cuts combined in 2025Companies are reducing staff to manage lower sales and rising expenses
Companies blame economic uncertainty, tariffs, restructuring, and AI automation for the increase.
US Economic Decline Probability Rises as Confidence Drops
Consumer confidence is falling quickly, and this adds to growing US recession prediction discussions:
Only 1 in 3 Americans believes it's a good time to find a jobHoliday spending plans dropped by $229, the biggest fall ever recordedADP reported a loss of 32,000 private-sector jobs
Both the University of Michigan and the Conference Board say Americans are more worried about their finances than at any time since the pandemic. These trends increase US downturn prediction, especially for 2026.
How US Layoffs 2025 Are Affecting Crypto
Rising US layoff and Financial slump fears often influence crypto in interesting ways. Historically, it often push investors toward alternative assets:
During the US recession 2008, Bitcoin was created as a response to financial instabilityIn 2020, during peak layoffs, crypto inflows surgedIn 2022–2023, every period of economic pullback fear supported higher Bitcoin demand
If the fear of upcoming US economic stress keeps rising, crypto could see renewed interest, especially when it is facing months of most frequent volatility, as people look for inflation-resistant assets.
Talking about current market conditions, the overall market is up today with 1.53%, where $BTC seeing +1.90% ($91,229) and $ETH +2.61% ($3,125). 

Source: CoinMarketCap
However, a deep US economic downturn 2026 could also trigger short-term volatility if markets panic and liquidity falls.
The Bottom Line
The sharp rise in US layoffs 2025 shows that businesses are preparing for tougher times ahead. With staff cuts climbing, confidence falling, and spending slowing, the economy is showing early signs of strain.
Whether it turns into a full US recession 2026 is still uncertain, but the warning signs are stronger than they have been in years, and both traditional markets and the crypto world are directly under its effect.

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