Nearly 700,000 Jobs Cut! Trump’s New Policies Trigger U.S. Layoff Surge
According to Cailian Press, U.S. companies are experiencing the most severe wave of layoffs since the COVID-19 pandemic, driven by President Trump’s budget cuts and tariff measures. In the first five months of this year, nearly 700,000 layoffs have been announced—marking the highest total since 2020. Although May layoffs were slightly down from April, the figure is still 47% higher than May 2024. Amid rising pessimism over the business environment and consumer outlook, companies are slashing labor costs. The hardest-hit sectors include government-related agencies and major corporations such as Procter & Gamble, Microsoft, and UPS. Markets are now watching the upcoming nonfarm payroll report for further signals.
✅ Analyst Insights:
- Policy Signals Precede Economic Reality: A full-blown recession hasn’t yet materialized, but businesses are preemptively tightening operations, reflecting low market confidence in Trump’s policies.
- The “DOGE Effect” as a Labor Market Risk: Federal downsizing and its ripple effects are emerging as structural threats, especially in tech and services.
- Nonfarm Data in Focus: A weaker-than-expected jobs report on June 6 could widen the gap between the Fed’s and the market’s outlook, possibly triggering more volatility.
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