Layoffs Fall to Lowest September Total Since 2022, Challenger Report Says

11:02 AM EDT, 10/01/2026 (MT Newswires) -- US job cut announcements fell to the lowest total for the month of September in four years as employers adopted a "wait-and-see" stance amid macro uncertainty, Challenger Gray & Christmas said Thursday. Employers announced 43,281 layoffs last month, down 18% sequentially, according to the outplacement firm. Job cuts declined 20% annually to reach the lowest level for September since 2022. "Companies are in a wait-and-see period right now," said Andy Challenger, the firm's chief revenue officer. "Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs." Technology companies led all sectors with 10,799 job cuts last month, up 77% from August and bringing the industry's year-to-date total to 165,925, according to the report. Food producers slashed 7,326 jobs. "We've seen layoff activity subside over this year, and September continues to illustrate this point," Andy Challenger said. Hiring rose to 90,787 from 12,325 in August due to seasonal recruitment, but was still down 23% from the total in September 2025, according to the report. So far this year, companies have announced plans to hire 210,612 workers, up 3% from the year-ago period. "Hiring plans are up over the year, but we're not seeing the surge of hiring plans that come with the holiday season, which suggests a very cautious approach," Andy Challenger said. The Bureau of Labor Statistics is expected to report a 90,000 gain in payrolls when it publishes September nonfarm jobs data Friday, according to a Bloomberg-compiled survey. The US economy added 162,000 jobs in August, almost triple the tally expected by Wall Street at the time. Separately, government data showed Thursday that initial jobless claims fell by 1,000 to 197,000 in the week through Sept. 26 from the previous week's revised average. The consensus was for a 200,000 print in a Bloomberg poll. Seasonally adjusted continuing claims dropped to about 1.7 million for the week ended Sept. 19, compared with Wall Street's projection of 1.73 million. "Jobless claims continue to defy expectations and remain exceedingly low, dovetailing with the (job openings and labor turnover survey) report's layoff rate which shows that while businesses aren't hiring at a rapid pace, they are reticent to let their current crop of workers go," Oxford Economics Senior US Economist Matthew Martin said in a note emailed to MT Newswires. ADP (ADP) data showed Wednesday that US private sector employment rebounded in September as payrolls expanded at a faster pace following three months of slowing growth. Price: 263.39, Change: +5.33, Percent Change: +2.07