Layoffs Fall to the Fewest for a September Since 2022, but Tech Cuts Jumped: What Students and New Grads Should Know

Fewer companies are cutting jobs, but fewer are hiring, too, which shapes the job hunt for students and early-career workers.

What the report found

On October 1, 2026, the outplacement firm Challenger, Gray & Christmas released its monthly count of job cuts that U.S. employers announced. An outplacement firm helps laid-off workers find new jobs, and its monthly report is widely watched as an early sign of where the job market is heading.

U.S. employers announced 43,281 job cuts in September. According to Bloomberg, that was the fewest for any September since 2022.

Here is how September stacked up, based on the report:

• Down 18% from August, when employers announced 52,881 cuts
• Down 20% from September 2025, which had 54,064 cuts
• 573,195 cuts so far this year, down 39% from the same nine months of 2025

In plain terms, layoff announcements have been cooling for much of the year.

Tech cuts went the other way

The technology industry was the big exception. Tech companies announced 10,799 cuts in September, up 77% from August. So far this year, tech firms have announced 165,925 cuts, up 54% from the same period last year. That makes tech the industry with the most announced cuts in 2026.

Artificial intelligence, or AI, is a big part of the story. Employers cited AI for 3,961 cuts in September. For the year, AI has been named in 120,136 cuts, about 21% of all cuts, making it the top reason so far in 2026. In September alone, the most common reason was "market and economic conditions."

Hiring is slow, too

Fewer layoffs does not mean employers are hiring a lot. Companies announced plans to hire 90,787 workers in September. Bloomberg reported that this was the weakest September for hiring plans since 2011. Hiring plans so far this year are still up about 3% from the same period of 2025, but much of that came earlier in the year.

Andy Challenger of Challenger, Gray & Christmas described the mood this way: "Companies are in a wait-and-see period right now." Bloomberg reported that he pointed to energy costs, global uncertainty, possible interest rate increases and rising health care costs as reasons for caution.

Some people call this a "low-hire, low-fire" job market. People who have jobs are fairly safe, but it can be harder for newcomers to break in.

What this means for your wallet

If you are a college student or recent grad, this is the group that a slow-hiring market tends to affect most. You are trying to get in the door, not stay in a seat you already have. Here is what that could mean:

• Searches may take longer. Consider planning for a longer job hunt than you expect. Even a small savings cushion may help cover rent and bills between graduation and a first paycheck.
• Tech may be more crowded. With rising cuts, entry-level tech roles may draw more applicants, including experienced workers. Broadening your search to tech jobs in other industries, like health care, banking or government, could open more doors.
• AI skills may help. Since many employers are rethinking jobs around AI, learning how to use AI tools in your field may make you stand out.
• Internships matter. In a cautious market, internships, part-time roles and campus jobs can turn into offers or strong references.

Smart moves for early-career job seekers

You cannot control the economy, but you can control your plan. Consider these steps:

1. Start early. Many employers recruit for next year's roles in the fall. Check your campus career center's events and deadlines.
2. Tailor each application. Match your resume to the job posting's key skills. A focused application often beats a generic one.
3. Build your network. Reach out to alumni, professors and past supervisors. Many jobs are filled through referrals.
4. Keep your costs flexible. If you are moving for a job, try to keep fixed costs like rent manageable until your income is steady.
5. Know your student loan timeline. Federal student loans usually come with a grace period after you leave school. Check your loan servicer's site so your first payment is not a surprise.

This article is for education only and is not financial advice. Everyone's situation is different.

Build your career safety net

Whatever the headlines say, a few habits can make any job search or layoff easier to weather. Keep your résumé and professional profiles updated even when you’re happily employed, so you can act quickly if an opportunity or a setback arrives. Stay in touch with former classmates, colleagues and managers, since many jobs are filled through referrals.

Build an emergency fund that could cover several months of essential expenses, starting with whatever you can manage. And keep learning. Short courses, certifications and side projects that show practical skills can help you stand out in a slow hiring market and open doors to roles in growing industries.