Why companies are laying off so many workers and slowing hiring

It’s the toughest time in years to be searching for work in America.

New data last week showed a fourth month of tepid job growth and propelled joblessness to its highest level since late 2021, when the economy was still recovering from the effects of the covid-19 pandemic. Now, as companies wrestle with inflation, economic uncertainty and trade policy whiplash, many are shredding payrolls and shifting tasks to artificial intelligence while pulling in higher profits. And some executives are pointedly broadcasting sizable layoffs as wins, a sign they’re making workforces leaner and more efficient.

Hardly any corner of the economy is untouched by jobs cuts and slowdown: Employment in all goods-producing industries slumped in August, with the deepest losses coming from manufacturing and min