U.S. layoffs surged to 62,075 in July 2025, marking the highest monthly total since the early months of the COVID-19 pandemic. This represents a 29% increase from June and a 140% rise compared to July 2024, according to data from Challenger, Gray & Christmas. The surge in job cuts is attributed to federal workforce downsizing under the Department of Government Efficiency (DOGE) and accelerating adoption of artificial intelligence, impacting sectors including technology and retail. The broader labor market is showing signs of distress, with approximately 260,000 Americans losing jobs in July, one of the highest monthly totals since the 2020 crisis. The three-month moving average of job losses stands at -287,667, the second-lowest in five years. Economic indicators reflect a contraction in both manufacturing and services sectors: the ISM Manufacturing PMI fell to 48 points, the lowest since November 2024, with manufacturing in contraction for 31 of the past 33 months and new orders declining for six consecutive months. The ISM Services PMI dropped to 50.1, its second-lowest level since June 2024, with the employment index at 46.4, indicating shrinking employment in services for four of the last five months. Price pressures are rising, with the prices paid index reaching 69.9, the highest since November 2022. Corporate bankruptcies are also increasing, with 446 filings year-to-date, the most in 15 years, particularly affecting the Industrials and Consumer Discretionary sectors. New college graduates are encountering one of the most challenging entry-level job markets in a decade. Analysts warn that the current job market gloom has not been this severe since the Great Recession.