‘No Hire, No Fire’ Economy Continues As Job Cuts Tumble, Claims Near Record Lows

U.S.-based employers announced 60,620 job cuts in March, up 25% from 48,307 cuts announced in February.

It is down 78% from the 275,240 cuts announced during the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.

“Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. Last year it was Government, Retail, and Technology. This year, it’s Technology, Transportation, and Healthcare,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

And affirming this relatively low job cuts level, the number of American filing for jobless benefits for the first time tumbled back to just 202k (from 211k) continuing to hover near record lows…

Michigan and Georgia saw the biggest declines in initial jobless claims while Texas and Oregon saw the biggest increases…

At the sector level, Technology dominated, announcing 18,720 job cuts in March for a total of 52,050 in 2026. That is an increase of 40% from the 37,097 cuts in this sector announced in the same period last year. It is the highest year-to-date total for the sector since 2023 when 102,391 Technology cuts were recorded.

More layoffs are likely to come from Technology companies in 2026. Last month’s total was made up primarily on a workforce reduction at Dell Inc., according to their latest annual filing. Oracle reportedly began layoffs late last month, though the company has not released a total figure. Meta, meanwhile, is undergoing layoffs in its Reality Labs division as it focuses on pivoting to artificial intelligence.

“Companies are shifting budgets toward AI investments at the expense of jobs. The actual replacing of roles can be seen in Technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs,” said Challenger.

“One thing that is clear is that AI is changing work and the workforce. Workers will need to be more strategic as they lead AI-powered agents that handle increasingly complex tasks. Human workers will need strong decision making and judgment skills in the age of AI,” he added.

Continuing jobless claims ticked up modestly from 1.816mm to 1.841mm Americans, but remains well below the 1.9mm Maginot Line…

The ‘no hire, no fire’ economy continues to chug along with yesterday’s Manufacturing PMIs and Retail Sales signaling the economic pain so many expected has been delayed… for now.