Challenger Job Cuts Report for AUGUST 2026

The global outplacement consultancy Challenger, Gray and Christmas, Inc. released its job cuts report, for AUGUST, 2026

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Job Cuts Announced During AUGUST, 2026: 52,881

• Previous Month: 33,429

  > Change from previous month: +58.19% (+19,452 cuts)

--------------

• One-Year Previous: 85,979

 > Change from one-year previous: -38.5% (-33,098 cuts)

===================

From Today's Report:

"...WHY ARE COMPANIES CUTTING?

Restructuring led all reasons for job cuts in August with 16,173 announced during the month, or 31%. It is the highest monthly restructuring since January’s 20,044, and the first month since February that Artificial Intelligence did not lead. So far this year, Restructuring has been cited in 73,649 job cut announcements.

Market and Economic Conditions followed for the month with 15,260 cuts for a total of 105,335. Closings accounted for 6,743 in August and 91,373 for the year.

Artificial Intelligence fell to the fourth-most cited reason with 3,462 cuts in August, its lowest monthly total since December 2025 when 142 cuts were attributed to AI. It ends a five-month run, beginning in March, in which AI was the leading monthly reason. So far this year, AI has been cited in 116,175 job cut announcements, approximately 22% of all cuts, and it remains the leading reason year-to-date..."

 ================

 

If corporate layoffs are high, consumer spending may decline, since there would be fewer people with steady jobs.

When corporate layoffs are low, this can mean that the job market is relatively tight, which can be a harbinger of wage inflation. 

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Job Cuts - Month-by-Month Totals
AUGUST 2026 UPDATE
Copyright © Challenger, Gray and Christmas, Inc.

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• Click here to read the full Challenger, Gray and Christmas report

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Employment Situation Report for AUGUST 2026

The Employment Situation Report for August, 2026 was released by The Department of Labor's Bureau of Labor Statistics:

Nonfarm Payrolls (month-to-month change)
Actual: 162,000

Previous Month (revised): +21,000

One-Year Previous: -70,000

U-3 Unemployment Rate (Headline)
Actual: 4.1%
Previous Month: 4.1%
12-Months Previous: 4.3%

U-6 Unemployment Rate*
Actual: 7.7%
Previous Month: 7.9%
12-Months Previous: 8.1%

Average Hourly Earnings (month-to-month change)
Predicted: +0.3%
Actual: +0.27% (+$0.10)

Average Hourly Earnings (year-on-year change)
Predicted: +3.2%
Actual: +3.09% (+$1.13)

Average Weekly Earnings (month-to-month change)
Actual: +0.56% (+$7.20)

Average Weekly Earnings (year-on-year change)
Actual: +3.69% (+$46.20)

Civilian Labor Force Participation Rate: 61.6%
Previous Month: 61.4%
12-Months Previous: 62.3%

Average Weekly Hours: 34.4 hours
Previous Month: 34.3 hours
One-Year Previous: 34.2 hours

Economist, academics, central bankers and investors pay very close attention to the monthly Employment Situation report as it offers penetrating insight as to the current and near-future state of the overall U.S. economy. If a) Americans are earning more money and b) the economy is creating new jobs, this typically translates to more money being pumped into the economy (and vice versa.)

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

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CHART: Civilian Unemployment Rate

AUGUST 2006 thru AUGUST 2026

   ===================

 

 * =  The U-6 Unemployment Rate is defined as:

"Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force."

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• Click here to view the full Department of Labor report.

===================

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ISM Non-Manufacturing (SERVICES) Index for AUGUST 2026

The Institute for Supply Management (ISM®) released their Non-Manufacturing / Services Index (NMI®) for August, 2026:

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• Actual: 55.4%  (+1.3 points month-on-month change)

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Previous month: 54.1%

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The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

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From Today' Report:

 

 "...Economic activity in the services sector continued to expand in August, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 55.4 percent, the 26th consecutive month in expansion territory..."

 
===========

Here's A Sampling Of Comments
Made By Survey Participants:

• "...'General business conditions are positive. The challenges lie in managing through the dynamic nature of the administration’s policies -- tariffs and [Iran invasion] -- that have caused numerous input cost headwinds for suppliers and us.'
   [Accommodation + Food Services] 

• 'The bond market pushed 30-year mortgage rates up to 6.67 percent, reducing affordability and moving prospective buyers back to the sidelines. The new-build housing market continues to slow with the selling season coming to a close and the start of the new school year. Rate buydowns and discounts have become the norm instead of the tool to drive traffic.'
   [Construction] 

• 'The [Iran invasion] and strain on the oil supplies has resulted in our paying higher cost for fuel. Locally, our economy continues to perform well, and our housing market is solid. We expect our enrollment to remain steady as long as the local economy stays strong.'
   [Educational Services] 

• 'Rising health-care costs, regulatory complexity and reimbursement pressure continue to drive a cautious purchasing environment within health insurers. Focus remains on cost management, supplier performance, operational efficiency and risk mitigation, resulting in increased scrutiny of supplier value, contract commitments and strategic investments.'
   [Finance + Insurance] 

• 'We received a few communications regarding tariffs that are being refunded. Fewer materials being back-ordered at this time.'
   [Health Care + Social Assistance] 

• 'Concerns about market trends, reduced hospital sources of revenue and increasing debt management creating reluctance of our customers to expand.'
   [Management of Companies + Support Services] 

• 'Business is picking up and forecast to increase over the next six months.'
   [Other Services] 

• 'The stacked Section 301 duties plus the newer forced-labor related tariffs are keeping landed costs elevated and forcing constant TCO recalculation. We are actively dual-sourcing and evaluating nearshoring options, but qualified capacity, lead times and quality consistency are limited for certain specialty materials and components. The results are higher inventory buffers, longer planning cycles, and margin pressure that we can only partially pass through. On the positive side, Florida ports (especially Port Everglades and the broader South Florida gateway) remain relatively fluid compared with the congestion spikes earlier in the year on the West Coast and in Europe.'
   [Professional, Scientific + Technical Services] 

• 'The memory shortage is continually getting worse. For devices requiring (memory) cards, inventory is low and prices are high.'
   [Retail Trade] 

• 'The electrical distribution industry volume demand and opportunities remain very strong. Commodities-based products of materials like copper, aluminum and polyvinyl chloride continue to have price increases and adjustments on a weekly basis. Geopolitical issues like tariffs continue to impact pricing as well. Supplier capacities are still strained due high market demands.'
   [Wholesale Trade]

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• Click here to view the complete ISM report
  

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CHART: ISM Services Index

(NMI®) AUGUST 2026 Update

==========

    

CHART: ISM Services Index
12-Month History
AUGUST 2026 Update

 ==========

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New Unemployment Insurance Claims for The Week of August 29, 2026

Jobless Claims

Earlier today, the Labor Department released its weekly report on New Jobless Insurance Claims for the week that ended on August 29, 2026:

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Predicted: 206,000

• Actual: 206,000

====================

The yellow-highlighted figure represents the number of first-time claims for unemployment benefits for the entire United States. The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

 --> Previous Week (revised): 204,000

• 4-Week Moving Average: 207,250

====================

• Click here to view the full Labor Department report

====================

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Crude Oil Inventories Report for Week Ending August 28, 2026

Crude Oil Inventories

The U.S. Crude Oil Inventories report for the week that ended on August 28, 2026 was released this morning:

- Δ from Last Week: -7,500,000 Barrels (-1.04%)

- Δ from 1-Year Previous: -114,300,000 Barrels (-13.85%)

- Current U.S. Crude Oil Stocks: 711,100,000 Barrels

• NB: Δ = Change

Diminishing crude oil inventories often translate to higher crude oil and fuel prices (and vice versa), but not always.

The report is produced by the U.S. Energy Information Administration (EIA).

• Click Here for the Weekly Crude Oil Price
  
  

• Click Here for A Crude Oil Price Chart
  
  
• Click Here for the FULL (Extended) Weekly Petroleum Status Report
  
  
• Click Here for the Weekly Petroleum Status Report DATA OVERVIEW
  
  
• Click Here for the Weekly Petroleum Status Report HIGHLIGHTS  

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U.S. Factory Shipments (New Orders) During JULY 2026

The U.S. Census Bureau this morning released their report on Manufacturers' Shipments, Inventories and New Orders -- also known as Factory Orders -- for July, 2026:

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Predicted: FLAT

• Actual: -6.57% (-45,671,000,000)

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• July, 2026 New Orders: $650,001,000,000.
  
  
• June, 2026 New Orders: $695,672,000,000.
  

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• Change from 12 Months Ago (Year-on-Year):
  
  
  +$61,282,000,000 (+10.41%) 
  

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The highlighted percentages represent the month-on-month and year-on-year changes in new shipments for both durable and nondurable goods made by U.S. manufacturers; not seasonally adjusted.

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CHART: U.S. Factory Orders

JULY 2026 Update
(seasonally adjusted.)

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• Click here to view the full Census Bureau report.

=============

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ISM Manufacturing Index for AUGUST 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for August 2026:

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• Actual: 54.6% (-1.0 point month-on-month)

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Previous month: 55.6%

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Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector expanded in August for the eighth consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'The economy is annoying; it is getting in the way of otherwise good business. We are making great new products but struggling to compete when prices escalate due to things like tariffs and the conflict in the Strait of Hormuz. I fear that the inflation caused by these factors will lead to lower sales and lower spending power of our customers. Call it inflation! At some point, it leads to an economic downturn or at least an economic pain for many consumers. It’s an uncertain year, our second in a row.'
   [Chemical Products]

• 'For our building products division, profitability is not far off from last year despite economic headwinds, as our specialty products have maintained their market share and sales. Specific to IT, the rising costs in component inputs have caused some budgetary constraints as we plan for the 2027 fiscal year. However, we largely been able to keep costs close to historic consumer price index averages.'
   [Chemical Products] 

• 'Supply chain situation, especially in the electronics market, is going through another crisis even bigger and more complicated than during and post COVID-19. That’s mainly due to AI infrastructure and uncertainties in the global market (for oil and other critical supplies) due to war in the Middle East and more complication on trade rules.'
   [Computer + Electronic Products] 

• 'Supply markets are increasingly challenging due to inflation and supply availability. Each month has been more difficult than the previous one. Starting to resemble the post-COVID-19 disruptive period.'
   [Computer + Electronic Products] 

• 'Prices continue to rise on all goods. Suppliers are noting that energy, steel and labor costs are increasing very quickly. We continue to try to move products around to offset costs. We have moved more products to offshore sources to try to minimize cost impacts.'
   [Machinery] 

• 'Photonics, high speed connectors, semiconductors and government orders are expanding significantly. Supply chains domestically and globally are difficult, with increases in lead times and cost.'
   [Machinery] 

• 'Commentary this month echoes that of recent months: (1) significant availability/price challenges in commodities heavily consumed by AI, (2) great uncertainty over when the Iran [invasion] will end, and (3) another round of shifting U.S. tariff policy. Despite these tensions, we continue to focus on what we can control, and the market for our products remains strong.'
   [Miscellaneous Manufacturing] 

• 'This month is a blur: Steel prices continue to climb as supply diminishes, aluminum is rising after dropping, and there are many holes on the plate side. Demand seems to be a seesaw. Our prediction ability continues to diminish, with the exception that the year will remain difficult until the end.'
   [Primary Metals] 

• 'High steel and aluminum prices (due to Section 232 tariffs) continue to make profitability a challenge. Uncertainty over the U.S.-Mexico-Canada Agreement is at the forefront of many customer conversations. Our industry has also been hit with countervailing and anti-dumping penalties, further raising the cost of equipment.'
   [Transportation Equipment] 

• 'Volume is consistent. Our main customer is shifting production from U.S. plants to Mexico plants.'
   [Transportation Equipment]..."

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CHART: ISM Manufacturing Index

AUGUST 2026 Update

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DATA: ISM Manufacturing Index

12-Month History
AUGUST 2026 Update

=========

=========

• Click here to view the complete ISM report

=========

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Job Openings and Labor Turnover Survey (JOLTS) for JULY 2026

Job Openings and Labor Turnover Survey (JOLTS*) for July, 2026 was released by the Labor Department this morning:

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Job Openings

Predicted: 7,200,000

• Actual:   7,271,000

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• Previous Month (revised): 7,182,000
  
  
• Change from Previous Month: +1.24% (+89,000)
   
  
• One-Year Previous: 7,089,000
  
  
• Change from One-Year Previous: +2.57% (+182,000)
  

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HIRES: 5,054,000

HIRES vs. 12-Months Previous: -3.27% (-171,000)

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QUITS: 3,056,000

QUITS vs. 12-Months Previous: -2.43% (-76,000)

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LAYOFFS + DISCHARGES: 1,666,000 

LAYOFFS + DISCHARGES vs. 12-Months Previous: -5.98% (-106,000)

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TOTAL SEPARATIONS ^§: 5,072,000

TOTAL SEPARATIONS vs. 12-Months Previous: -1.9% (-98,000)

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§ = Here's How The Labor Department Defines Total Separations:

"Total separations includes quits, layoffs and discharges, and other separations. Total separations is referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations includes separations due to retirement, death, disability, and transfers to other locations of the same firm."

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CHART: Number of Jobless People

per Job Opening, Seasonally Adjusted
JULY 2011 thru JULY 2026

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• * = The JOLTS data series began back in December of 2000. 
  
  
• Click here to view the full Labor Department JOLTS report.
  

=============

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Gross Domestic Product (GDP): SECOND / PRELIMINARY Estimate for Q2, 2026

The Commerce Department's Bureau of Economic Analysis (BEA) released its SECOND estimate for U.S. Real Gross Domestic Product (GDP) for the second quarter of 2026:

============

Previous quarter: +2.1%

• Actual: +1.5%

============

GDP is a very broad measure of economic activity for the entire United States, covering all sectors of the economy. The Commerce Department defines real GDP as, "the output of goods and services produced by labor and property located in the United States."

============ 

CHART: GDP - Percent Change from Previous Quarter

Q2, 2026 - SECOND ESTIMATE

============ 

 

• Click here to view the full Commerce Department report (PDF).
  

============

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Durable Goods Orders During JULY 2026

The Durable Goods Orders report for July, 2026 was released by the Commerce Department:

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• New Orders: $339,250,000,000
  
  (+$36,709,000,000 [+12.9%]) Year-on-Year

================

CHART: Durable Goods Orders

Month-on-Month Change
JULY 2026 UPDATE
(from Seasonally Adjusted Data)

================

The yellow-highlighted figure represents the y-o-y change in new orders for durable or hard goods for immediate or future delivery from U.S. manufacturers (NOT seasonally adjusted.)

Examples of durable goods: cars, airplanes, computers, furniture -- items that are built to last at least three years.

================

• Click here to view the full Commerce Department report (PDF).
  

================

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New Unemployment Insurance Claims for The Week of August 22, 2026

Jobless Claims

Earlier today, the Labor Department released its weekly report on New Jobless Insurance Claims for the week that ended on August 22, 2026:

====================
Predicted: 205,000

• Actual: 203,000

====================

The yellow-highlighted figure represents the number of first-time claims for unemployment benefits for the entire United States. The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

 --> Previous Week (revised): 207,000

• 4-Week Moving Average: 205,500

====================

• Click here to view the full Labor Department report

====================

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Crude Oil Inventories Report for Week Ending August 21, 2026

Crude Oil Inventories

The U.S. Crude Oil Inventories report for the week that ended on August 21, 2026 was released this morning:

- Δ from Last Week: -3,600,000 Barrels (-0.5%)

- Δ from 1-Year Previous: -103,900,000 Barrels (-12.63%)

- Current U.S. Crude Oil Stocks: 718,600,000 Barrels

• NB: Δ = Change

Diminishing crude oil inventories often translate to higher crude oil and fuel prices (and vice versa), but not always.

The report is produced by the U.S. Energy Information Administration (EIA).

• Click Here for the Weekly Crude Oil Price
  
  

• Click Here for A Crude Oil Price Chart
  
  
• Click Here for the FULL (Extended) Weekly Petroleum Status Report
  
  
• Click Here for the Weekly Petroleum Status Report DATA OVERVIEW
  
  
• Click Here for the Weekly Petroleum Status Report HIGHLIGHTS  

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PCE Price Index + Personal Income + Consumer Spending Report for JULY 2026

The Commerce Department's Bureau of Economic Analysis (BEA) released its report on The PCE Price Index, Consumer Spending and Personal Income for July, 2026:

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Consumer Spending (Personal Consumption Expenditures [PCE])

Previous Reading (unrevised): +0.3%

• Actual: +0.2%
  
  
• > Real PCE: FLAT*

=============

Personal Income

Previous Reading (unrevised): +0.2%

• Actual: +0.4%
  
  
• > Disposable Personal Income (DPI): +0.5%
  
  
• >> Real DPI: +0.4%* 

=============

The above highlighted percentages represent the month-to-month change in Consumer Spending (aka Personal Consumption Expenditures), Personal Income and Disposable Personal Income for the entire United States.

 

PCE Price Index
Previous Reading (revised): -0.1%

• Actual: +0.2% 

• Change from 12-months previous: +3.7%
  (prior - unrevised = +3.7%)

=====================

Core PCE Price Index
( = PCE Price Index minus food and energy)
Previous Reading (unrevised): +0.1%

• Actual: +0.2%

• Change from 12-months previous: +3.3%
  (prior - unrevised = +3.3%)

=====================

The PCE Price Index is different from the Consumer Price Index (CPI) in that it is a very broad measure of the prices associated with domestic products and services, while the CPI measures a more limited fixed basket of goods and services.

The broad nature of the PCE Price Index is key to why it is the Federal Reserve's preferred measure of inflation.  The Federal Open Market Committee (FOMC) pays very close attention to it.

=====================

 

CHART: Changes In Monthly Consumer Spending

JULY 2026 UPDATE

=====================

 Click here to view the full
Commerce Department report (PDF). 

=====================

* =  Chained dollars is a method of adjusting real dollar amounts for inflation over time, so as to allow comparison of figures from different years. The Commerce Department introduced the chained-dollar measure in 1996. Chained dollars generally reflect dollar figures computed with 2012 as the base year.

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Chicago Fed National Activity Index (CFNAI) for JULY 2026

The Federal Reserve Bank of Chicago released its National Activity Index (CFNAI) for July, 2026:

==================

• Actual (CFNAI): -0.08

==================

• Previous Month (revised): +0.06

• 3-Month Moving Average (CFNAI-MA3): -0.04

==================

The CFNAI is a weighted average of 85 indicators of growth in national economic activity drawn from four broad categories of data:

• Production and income;
• Employment, unemployment, and hours;
• Personal consumption and housing; and
• Sales, orders, and inventories.

The "predicted" figure is what economists were expecting, while the yellow-highlighted figure is what was reported.

================== 

CHART: CFNAI-MA3 with Business Cycles

JULY 2026 Update

===================

Understanding The CFNAI:

A zero value for the monthly index has been associated with the national economy expanding at its historical trend (average) rate of growth; negative values with below-average growth (in standard deviation units); and positive values with above-average growth.

Periods of economic expansion have historically been associated with values of the CFNAI-MA3 above -0.70 and the CFNAI Diffusion Index above -0.35. Conversely, periods of economic contraction have historically been associated with values of the CFNAI-MA3 below -0.70 and the CFNAI Diffusion Index below -0.35.

An increasing likelihood of a period of sustained increasing inflation has historically been associated with values of the CFNAI-MA3 above +0.70 more than two years into an economic expansion. Similarly, a substantial likelihood of a period of sustained increasing inflation has historically been associated with values of the CFNAI-MA3 above +1.00 more than two years into an economic expansion.

==================

• Click here to view the full Chicago Fed report

• Click here for The List of 85 Existing Monthly Indicators
  

==================

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