Job Cuts Hit Two-year Low Amid AI and Economic Concerns

WHO:

[11:24 AM EDT] - CBS News - Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

[11:24 AM EDT] - CBS News - Carl Weinberg, chief economist at High Frequency Economics.

[11:24 AM EDT] - Fast Company - 24 former Meta employees involved in a lawsuit against Meta.

WHAT:

[11:24 AM EDT] - Fast Company - Zillow announced it will lay off "just over 500 employees," amounting to roughly 7% of its total workforce.

[11:24 AM EDT] - Fast Company - TikTok is laying off 250 employees at its Nashville office, which primarily deals with content moderation.

[11:24 AM EDT] - Fast Company - Etsy announced it is laying off "approximately 220" employees due to a company reorganization.

[11:24 AM EDT] - Fast Company - Google plans to lay off 52 employees on October 5, affecting multiple facilities in Washington, including Kirkland, Redmond, and Seattle.

[11:24 AM EDT] - Fast Company - As of August 6, 2026, tech layoffs for the year have reached 125,759, surpassing the total for all of calendar year 2025, which was 122,606.

[11:24 AM EDT] - AP News - The Labor Department is expected to report that nearly 98,000 jobs were added in July, an improvement from the 57,000 jobs created in June.

[11:24 AM EDT] - CNBC - The labor force participation rate fell to 61.5%, the lowest since March 2021, and the prime age participation rate dropped to its lowest since December 2023.

[11:24 AM EDT] - CNBC - Citigroup economists predict three rate cuts between now and January 2027, with the unemployment rate expected to rise above 4.5% later this year.

[11:24 AM EDT] - CNBC - Vanguard economists project a payroll gain of just 18,000 in July, indicating a soft summer labor market.

[11:24 AM EDT] - CBS News - The unemployment rate is currently at 4.2%, with job openings steady but below pre-pandemic levels.

[11:24 AM EDT] - CBS News - Job listings for entry-level corporate roles have fallen 15%, while applications per job have surged 30%.

[11:24 AM EDT] - CNBC - Nonfarm payrolls are expected to post a gain of just 83,000, with the unemployment rate remaining unchanged at 4.2%.

[11:24 AM EDT] - CNBC - Average hourly earnings are projected to rise 0.3% in July, and 3.5% from a year ago.

[11:24 AM EDT] - CNBC - The employment level in 2026 has fallen by 833,000.

[11:24 AM EDT] - CNBC - Citigroup economists predict the unemployment rate will rise above 4.5% later this year, leading to potential rate cuts starting in Q4 2026.

[11:24 AM EDT] - CNBC - Vanguard economists expect a payroll gain of just 18,000 in July, indicating a soft summer labor market.

[11:24 AM EDT] - CBS News - Employers announced 33,429 job cuts in July, down 46% from a year ago.

[11:24 AM EDT] - CBS News - The number of layoffs in July was the lowest since July 2024, when roughly 26,000 cuts were announced.

[11:24 AM EDT] - CBS News - The four-week average of initial jobless claims is now below 200,000 for the first time since October 2022.

[11:24 AM EDT] - CBS News - AI accounted for 33% of job cuts in July, marking five straight months as the leading cause of layoffs.

[11:24 AM EDT] - CBS News - Economists polled by FactSet forecast a payroll gain of 97,500 for July.

[11:24 AM EDT] - CBS News - Employers added only 57,000 jobs in June, which was weaker than forecasters expected.

[11:24 AM EDT] - Fast Company - The lawsuit against Meta alleges that AI played a substantial role in selecting employees for layoffs.

WHERE:

[11:24 AM EDT] - CBS News - United States.

[11:24 AM EDT] - Fast Company - Washington state, home to many tech companies.

WHEN:

[11:24 AM EDT] - CBS News - The Labor Department is scheduled to release hiring data for July.

[11:24 AM EDT] - Fast Company - 2SHB 1833, a bill in the state House of Representatives, did not pass during the 2025 legislative session.

WHY:

[11:24 AM EDT] - AP News - The ongoing fighting in the Persian Gulf has pushed up energy prices and squeezed family budgets, contributing to the mixed signals in the job market.

[11:24 AM EDT] - AP News - The decline in labor force participation is attributed to Trump’s immigration crackdown and the retirement of baby boomers, leading to fewer people competing for work.

[11:24 AM EDT] - CBS News - The decline in layoffs is attributed to a resilient labor market despite inflation driven by the Iran war and artificial intelligence.

[11:24 AM EDT] - Fast Company - The transparency problem in employment decisions has become urgent as AI increasingly influences hiring, promotions, and layoffs.

HOW:

[11:24 AM EDT] - CBS News - Layoff plans continue to be announced primarily in tech, with investments in AI reshaping organizations.

[11:24 AM EDT] - Fast Company - The lawsuit against Meta alleges that AI-driven layoffs used inputs that cannot be accumulated by employees on protected medical or family leave.

(UPDATED August 7, 2026 14:13 UTC)

In a wave of layoffs hitting the tech industry, Zillow has announced it will cut just over 500 employees, which is about 7% of its workforce. TikTok is also letting go of 250 staff members at its Nashville office, primarily focused on content moderation, while Etsy plans to lay off approximately 220 employees due to a company reorganization. Additionally, Google is set to lay off 52 employees on October 5, impacting multiple facilities in Washington, and so far this year, tech layoffs have reached a staggering 125,759, already surpassing the total for all of 2025.

(UPDATED August 7, 2026 10:47 UTC)

The Labor Department is expected to report that nearly 98,000 jobs were added in July, a notable improvement from the 57,000 jobs created in June. However, the labor force participation rate has fallen to 61.5%, its lowest since March 2021, with Citigroup economists predicting three rate cuts by January 2027 and an unemployment rate that could rise above 4.5% later this year. Contributing to these mixed signals in the job market are rising energy prices due to ongoing fighting in the Persian Gulf, along with a decline in labor force participation linked to Trump's immigration policies and the retirement of baby boomers.

(UPDATED August 7, 2026 03:56 UTC)

The unemployment rate stands at 4.2%, with job openings remaining steady but still below pre-pandemic levels. Job listings for entry-level corporate roles have decreased by 15%, while applications per job have surged by 30%, indicating a competitive job market. Looking ahead, Citigroup economists predict the unemployment rate may rise above 4.5% later this year, potentially leading to rate cuts starting in Q4 2026.

(UPDATED August 6, 2026 18:39 UTC)

Employers in the United States announced 33,429 job cuts in July, a significant drop of 46% from the previous year, marking the lowest number of layoffs since July 2024. The four-week average of initial jobless claims has now fallen below 200,000 for the first time since October 2022, while AI has accounted for 33% of job cuts in July, continuing its trend as the leading cause of layoffs for five consecutive months. Meanwhile, a lawsuit involving 24 former Meta employees claims that AI played a substantial role in selecting individuals for layoffs, raising urgent concerns about transparency in employment decisions.