Although the US unemployment rate held steady at 4.2% in May with 139,000 jobs added to the US workforce, nearly 100,000 layoffs were also announced — up 47% from last year, according to new data from the US Bureau of Labor Statistics and others. Tech and federal cuts led the way in layoffs, driven by economic pressure, programmatic firings and AI-driven shifts in workforce needs, according to outplacement firm Challenger, Gray & Christmas.

Technology remains a top sector for cuts amid ongoing disruptions, according to the firm’s data. In May, tech companies announced 10,598 layoffs, bringing the 2025 total to 74,716; that’s up 35% from 55,207 at the same time last year.

“Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement.