American companies issued a sharp increase in layoff warnings in October, adding further signs of deterioration in the labor market.

According to researchers at the Cleveland Federal Reserve, the number of mass layoff notices issued by US companies in October has surged, reaching one of the highest levels in history. Preliminary data from the Cleveland Fed shows that approximately 39,006 Americans received advance notice of layoffs last month in accordance with the Worker Adjustment and Retraining Notification Act. Looking at monthly data since 2006, this number is only surpassed by levels seen in May of 2008, 2009, 2020, and 2025. These numbers further demonstrate that the labor market is deteriorating, not only in terms of reduced hiring but also in the increasing number of unemployed individuals. The extent of the slowdown in the employment market is also a consideration for Federal Reserve officials when discussing whether to continue lowering interest rates.