Sen. Chris Murphy (D-CT) aimed for President Donald Trump’s economic record last week, writing “Trump’s economy suuuuucks” in response to new data showing massive job cuts across the United States.
His post came as a CNBC segment and NBC News report both highlighted that announced corporate layoffs have now surpassed 1 million so far in 2025, with 153,000 new job cuts in October alone, the worst October for layoffs since 2003, according to Challenger, Gray & Christmas.
October Layoffs Hit 22-Year High
The research firm’s latest report painted a grim picture of the labor market.
October’s total was the highest for that month in more than two decades and marked the largest single-month total in the fourth quarter since 2008.
From January through October, employers have announced nearly 1.1 million job eliminations, making 2025 the worst year for corporate downsizing since the early months of the pandemic.
“October’s pace of job cutting was much higher than average for the month,” said Andy Challenger, the firm’s chief revenue officer.
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes.”
According to CNBC’s Steve Liesman, layoffs are hitting nearly every major sector. He noted that large corporations such as UPS, Amazon, Target, Paramount, and Rivian are among those responsible for hundreds of thousands of job cuts this year.
The report showed that UPS and related logistics firms were heavily impacted by reduced trade activity, while the tech industry accounted for around 141,000 job losses.
Retail and service industries have also seen major reductions, and Challenger’s report found that companies’ announced plans for new hiring are 35% below last year’s level.
Even the typically strong holiday season is expected to bring little relief for job seekers.
A Shrinking Job Market Despite Official Optimism
The layoffs come as other labor market data points to broader weakness. A separate report from payroll processor ADP showed that private employers added just 42,000 jobs in October.
The firm also reported losses in the leisure and hospitality sector, a red flag, given how closely that industry tracks consumer confidence.
ADP’s chief economist described the drop in hospitality and leisure jobs as a “concerning trend.”
Taken together, the Challenger and ADP reports suggest that the U.S. job market is cooling sharply despite administration claims to the contrary.
Treasury Secretary Scott Bessent painted a much rosier picture earlier in the week, telling reporters that “jobs are booming” and “inflation is falling.”
But the most recent Consumer Price Index data shows that prices have risen every month since April, contradicting Bessent’s assessment.
AI, Inflation, and the Changing Job Landscape
Challenger, Gray & Christmas compared the current wave of AI-driven job cuts to the early 2000s internet boom, which also reshaped entire industries.
“Like in 2003, a disruptive technology is changing the landscape,” the firm said in its report.
Tech companies are leading private-sector job cuts as they restructure around AI integration, slower consumer demand, and internal cost efficiency goals.
But the impact is spilling over into non-tech sectors as well. Even firms not actively cutting workers are warning that they plan to freeze hiring for the foreseeable future.
JPMorgan Chase CEO Jamie Dimon told CNN that his company’s headcount would “likely remain steady” as it implements AI internally.
Similarly, Goldman Sachs CEO David Solomon said the firm would “constrain headcount growth through the end of the year” to take advantage of AI efficiencies, according to Bloomberg.
A Government Data Blackout Adds Uncertainty
Private-sector reports have received unusual attention due to a federal data blackout caused by the ongoing government shutdown.
With the Labor Department unable to release its monthly jobs report, Challenger’s data has taken on added significance for economists and investors.
Federal reports on GDP and inflation, including the key Personal Consumption Expenditures index tracked by the Federal Reserve, have also been delayed.
That means policymakers and analysts are relying heavily on private sources for insights into the state of the economy, and those sources are sending worrying signals.
Political Fallout
Sen. Murphy’s reaction on social media underscores how economic performance has become a central issue in national politics heading into the 2026 midterms.
His comment, “Trump’s economy suuuuucks”, quickly drew attention online, reflecting growing Democratic criticism of Trump’s handling of inflation, jobs, and the broader economy.
The administration, for its part, continues to maintain that the economy is strong and resilient, emphasizing isolated positive indicators like corporate profits and stock market performance.
But for millions of American workers facing uncertainty, those assurances offer little comfort.
With more than 1 million job cuts announced this year and hiring plans sharply reduced, analysts say the U.S. job market is entering a fragile phase.
As Challenger put it, industries that expanded rapidly after the pandemic are now “correcting”, a process accelerated by rising costs, shifting technology, and weakening demand.
For regular workers, the job market feels shakier than ever, while politicians are finding it harder to back up their talking points with what’s actually happening on the ground.
IMAGE CREDIT: “Senator Chris Murphy, U.S. Department of Housing and Urban Development” by U.S. Department of Housing and Urban Development, via Flickr. Licensed under U.S. Government Work. Image adjusted for layout.