US July job cuts fall 27% to two-year low of 33,429

US-based employers announced 33,429 job cuts in July 2026, down 27% from June and 46% from a year earlier, marking the lowest monthly total in two years and pointing to a labor market that remains resilient even as AI-driven restructuring persists. Challenger, Gray & Christmas said AI was the leading cause of layoffs for a fifth straight month, accounting for roughly one-third of July cuts, with the impact still concentrated largely in technology. The four-week average of initial jobless claims fell below 200,000 for the first time since October 2022, while company-announced hiring plans rose to 16,095, the highest July total since 2022. Broader hiring, however, remains modest: job openings are steady but below pre-pandemic levels, FactSet economists expect a 97,500 payroll gain for July after 57,000 jobs were added in June, and Handshake said listings for entry-level corporate roles were down 15% as applications per job jumped 30%.