U.S. job layoffs surged to 62,075 in July 2025, marking the highest monthly total since the onset of the COVID-19 pandemic. This represents a 29% increase from June and a 140% rise compared to July 2024. The surge is attributed to federal workforce downsizing under the Department of Government Efficiency (DOGE) and accelerated adoption of artificial intelligence, impacting sectors such as technology and retail. Concurrently, the U.S. labor market shows signs of contraction, with 260,000 Americans losing jobs in July and a three-month moving average decline of 287,667, the second-lowest in five years. The ISM Services Purchasing Managers Index (PMI) fell to 50.1, indicating near stagnation, while the ISM Manufacturing PMI dropped to 48, signaling ongoing recessionary conditions in manufacturing. Employment indices in services have contracted in four of the last five months. Consumer spending adjusted for inflation declined at an annualized rate of 0.15% over six months, the weakest since the 2020 crisis excluding that year. Corporate bankruptcies reached 446 year-to-date, the highest in 15 years, with industrials and consumer discretionary sectors most affected. Additionally, serious delinquencies on student loans reached a record 13% in Q2 2025, with Americans aged 50 and older experiencing an 18% delinquency rate. Delinquencies on auto loans and credit cards among high-income borrowers (earning $150,000 or more annually) have risen nearly 20% over two years, outpacing those of middle- and lower-income groups. These trends collectively point to mounting economic pressures across employment, consumer finance, and corporate health.