U.S. layoffs dropped sharply in November, but if you're waiting for companies to start hiring again, you might want to get comfortable. The labor market is stuck in what amounts to corporate paralysis—employers aren't cutting aggressively, but they're definitely not adding workers either.

According to data released Thursday by global outplacement firm Challenger, Gray & Christmas, planned job cuts fell 53% from October to 71,321. That's a big pullback from the prior month's spike. But zoom out a bit, and the picture looks less rosy: November's tally was still 24% higher than a year ago and represents the biggest November layoff count since 2022.

"Layoff plans fell last month, certainly a positive sign. That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008," said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. Not exactly the company you want to keep.

The Hiring Freeze Is Real

Here's where things get interesting. Through the first eleven months of 2025, companies announced 1.171 million layoffs—up 54% from the same stretch last year and the highest level since the pandemic devastated the job market in 2020.

Meanwhile, hiring plans have basically collapsed. Employers outlined just 497,151 planned hires year-to-date, down 35% from 2024 and the weakest figure since 2010. Let that sink in: we're seeing post-financial-crisis levels of hiring enthusiasm.

"The increased spending over the Black Friday and the Thanksgiving weekend may give rise to hires in December right before the holiday. It's unclear, however, if those positions will last into the New Year," Challenger noted. Translation: don't confuse seasonal retail temps with a real hiring recovery.

The math tells the story—employers are trimming selectively but showing zero urgency to replace those positions or expand their workforce.

What's Behind the Caution?

Restructuring topped the list of reasons for November cuts, followed by business closures and weak demand. But companies also pointed to tariffs and broader economic uncertainty, which have squeezed profit margins and made forecasting a nightmare, especially for smaller businesses.

Artificial intelligence continues to reshape staffing decisions, though at a relatively modest scale for now. AI was cited in 6,280 November cuts and 54,694 for the full year.

Telecom companies led November's layoff announcements, with Verizon (VZ) at the front of the pack. Technology firms and meat processors weren't far behind. Tech has dominated private-sector cuts overall, announcing 153,536 job reductions so far this year—up 17% from the 130,701 through November 2024.

Here's the curious part: despite all these announced cuts, unemployment claims haven't spiked. That suggests companies are leaving positions vacant rather than actually firing people aggressively. It's what economists are calling a "no-fire, no-hire" labor market—employers are frozen, waiting for clarity that may not come anytime soon.