The US August jobs report has brought unfortunate tidings. According to the report, the number of layoffs surged almost 40% last month, with 85,979 positions cut across industries. The spike in job cuts in the US has been significant, as it marks the largest since the cuts we saw during the height of the COVID pandemic in August 2020. From AI-motivated cuts to the sweeping changes made by the Department of Government Efficiency (DOGE), there are many factors to blame for the mounting job losses that have come at the cost of many careers. The August job losses have workers alarmed for what’s to come as unemployment rises in 2025, but there’s a lot that HR teams can do to make the most out of a bad situation.
The US August job report suggests job cuts reached pandemic-level highs last month. It’s time for HR to step up and set things right with employees. (Image: Pexels)
The US August Jobs Report Echoes the Pains of Pandemic-Era Cuts
Consulting firm Challenger, Gray & Christmas recently released data on the spike in job cuts in the US, and it revealed that there were over 86,000 job cuts in August, marking a 40% increase from the prior month. This marked the largest job cuts in the country since August 2020, when shutdowns and economic challenges forced many businesses to pare down their workforces. This also marks the sixth time in the year that the total number of job cuts has ramped up compared to the same period last year.
“After the impact of DOGE on the Federal Government, employers are citing economic and market factors as the driver of layoffs,” Andrew Challenger, senior vice president and labor expert for CGC, said in a statement.
Job Cuts Have Been Witnessed Across Industries
Pharmaceutical and finance industries indulged in layoffs to the largest degree, but industry-wide job cuts have been noted in other fields as well. Much to the disappointment of workers, employers in the US reportedly added only 22,000 jobs in August, with unemployment numbers rising to 4.3%. While previous reports of a weakening job market were written off as rigged, the new data is hard to disguise.
Unsurprisingly, matters are similarly dire within the neighboring lands of Canada, where unemployment rates reached their highest point since 2016, if the COVID-19 years are excluded. According to reports, Canada’s unemployment rate reached 7.1% in August, following the shedding of 66,000 jobs. While things are certainly stressful for businesses, these reports hit employees much harder, making it important to rally their spirits and rebuild engagement among the workforce.
For HR, Workforce Upskilling and Reskilling Takes Center Stage
With the unemployment levels rising in 2025, those who are employed also remain perpetually anxious about their jobs. With the employees who are left to manage the business and ensure goals are met each quarter, it is important to focus on retention and skill-building to ensure the organization doesn’t waver following the significant decline in headcount.
To that end, it is important for HR teams to take stock of the workforce and design targeted upskilling and reskilling programs to ensure employees can keep up with the changing times and shifting business priorities.
Building agile workforces through reskilling programs and investing in internal mobility programs can help restore some of the lost employee faith in the organization, while also allowing the business to redeploy talent from shrinking areas into other, more lucrative segments.
Rethinking Talent Acquisition Strategies Amidst Rising Industry Job Cuts
While the US August job report should suggest that there is talent waiting around to be hired following the job cuts, shifting business priorities, such as the current emphasis on AI, suggest that more niche talent will be harder to find. Paired with changing visa regulations that further limit the hiring of experts from other regions, HR teams will have to get creative about their hiring strategy.
While reskilling the existing workforces remains the best strategy, it is also important to continue hiring with a closer look at discovering the talent available. From refining the recruitment process to improving employer branding, there is much work to be done in filling up the gaps within an organization.
Talent Management Strategies Cannot be Ignored in 2025
Whether your business has already participated in the trend of layoffs or is headed in that direction, it is important to consider the impact on employees. Morale is low, and allowing it to remain at rock bottom can eventually result in mass quitting trends or passive disengagement at the very least. Neither outcome is ideal for a business that wants to grow and succeed.
Managing talent isn’t just about adding and eliminating from the headcount, but also about the quality of experience promised to employees on the job. Despite the August job losses, there is hope that matters will soon settle down, allowing businesses to chart out a clear career plan for employees while also rebuilding connections among workers in an era of RTO policies.
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