The U.S. labor market showed further signs of stability ahead of the July jobs report as layoffs fell and applications for unemployment benefits were little changed.
U.S.-based employers announced 33,429 job cuts in July, the smallest number in two years, according to an Aug. 6 report by global outplacement firm Challenger, Gray, and Christmas. This is down 27 percent from June and 46 percent from the same time last year.
Technology—driven by artificial intelligence (AI)—accounted for about 30 percent of last month’s planned layoffs, totaling nearly 10,000. In the first seven months of 2026, the tech industry eliminated more than 149,000 positions.
“The pace of layoffs fell dramatically this summer. Layoff plans continue to be announced primarily in Tech, and artificial intelligence is still the story, as investments in the technology reshape organizations,” Andy Challenger, the firm’s chief revenue officer, said in a news release….