The federal government’s efficiency crusade has unleashed a tsunami of pink slips across America. February saw employers announce over 172K job cuts — the highest February total since the depths of the 2009 financial crisis and a 103% increase from last year’s figures. The newly formed Department of Government Efficiency (DOGE) led the charge, wielding its budget-slashing sword across federal agencies and sending ripples through the private sector.

• Government cuts accounted for 62.2K announced layoffs across 17 federal agencies — marking a 41,311% increase from Feb. 2024’s mere 151 cuts.
• Private sector hiring showed concerning weakness, too, with ADP reporting just 77K new jobs in February, less than half the expected 142.5K and a sharp drop from January’s 186K gain.

To hire or to fire: While some see silver linings in the 34.6K new hiring plans announced for February — the highest hiring initiative in the February total since 2022 — economists are increasingly concerned about mounting headwinds. A mix of DOGE-driven cuts, canceled government contracts, trade war fears, and rising bankruptcies is unsettling both public and private employers. This has led retailers to slash ~39K positions, while tech firms cut 14.6K jobs. With consumer spending recording its first decline in nearly two years, the labor market’s resilience is set to face its sternest test yet.