As the United States economy continues its recovery from the shock of the coronavirus pandemic, things are certainly looking up—but not everyone will have job security in 2025.

The final months of 2024 delivered additional blows to workers in several sectors as numerous layoff announcements were made for 2025. Major companies, including Amazon, aircraft manufacturer Boeing, and budget carrier Spirit Airlines, have all announced layoffs that will impact employees into 2025. While the number of job layoffs across the U.S. in 2024 is not yet available, it's likely that it fared better than in 2023, when layoffs soared by 98 percent in 2022, given improving economic conditions.

What will happen in this new year remains to be seen.

"The trajectory of layoffs in 2025 will depend on several factors, including macroeconomic conditions, consumer demand, and how companies adapt to an evolving business landscape," Stephanie Alston, CEO of BGG Enterprises, told Newsweek.

"While 2024 saw significant downsizing in industries such as tech, finance, and retail, the outlook for 2025 hinges on whether companies stabilize after restructuring or continue to reduce staff in response to market uncertainty."

The Bad News

Job cuts rose toward the end of 2024 after a tumultuous year that saw layoffs increase and decrease frequently from month to month. U.S.-based employers announced 57,727 cuts in November 2024, a 3.8 percent increase from the 55,597 cuts announced in October, according to a report by employment transition and consultancy firm Challenger, Gray & Christmas Inc.

The tech industry was most impacted by layoffs in 2024, with 2,012 layoff announcements and 429,608 people affected, according to tracker True Up.

"Tech and consumer-focused sectors often feel the brunt of market volatility first. When budgets shrink, businesses curb spending on new tools and marketing," Eric Brown, founder and CEO at Imperio Consulting, told Newsweek.

"At the same time, companies with direct exposure to tight capital markets" are more likely to see employees facing the chop, Brown said.

Despite more than 2,000 redundancy announcements, there was a 42 percent drop in job cuts compared to 2023, according to a report by ABP Live. However, research conducted by Resume Templates in August 2024 found that three in 10 companies replaced workers with AI last year, and 38 percent of companies using AI in 2025 will replace workers with the technology.

In 2024, major tech firms like Google and Meta began realigning their workforces to focus on AI projects, signaling a trend that could extend into 2025.

The Good News

While the unfortunate truth is that no job is genuinely free from potential cuts, the labor market has shown signs of resilience in recent months. The number of Americans filing new applications for unemployment benefits dropped at the end of 2024. Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 211,000 for the week ending December 28—the lowest since April.

Experts have told Newsweek that the upcoming change of administration could also decrease the number of job cuts in 2025.

"A potential shift in administration following the 2024 elections could also influence the labor market," Alston said. "Policies on taxation, regulation, and business incentives will play a key role in shaping corporate strategies.

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