Small Businesses Hit Hardest as U.S. Job Cuts Resemble 2009 Downturn

American companies are letting go of workers at a rapid rate, with

an average of 2,500 layoffs each week during the four weeks leading up to November 1, 2025. The report, which reveals a significant gap between large corporations and smaller businesses, points to increasing vulnerability in the job market as economic challenges intensify. Small and mid-sized companies, which employ about 75% of the U.S. workforce, in October, while large organizations (with over 500 staff) added 73,000 jobs.

Nela Richardson, chief economist at ADP,

pose a "concern" for the wider economy. This warning comes as several major companies have recently announced significant job cuts, including (-8,000), (-14,000), (-48,000), and Target (-1,800) . Challenger, Gray & Christmas noted , a 79% increase from the previous month and the highest October total since 2003. , making 2025 the most challenging year for job losses since 2009.

The worsening job market is also evident in the rising unemployment rate among young people.

, the highest since the pandemic and a worrying sign for the broader economy. At the same time, , which is much higher than the U3 rate of 4.5%, highlighting deeper issues in the labor market.

. In this environment, major technology companies are dealing with both regulatory and financial hurdles. as part of the Digital Markets Act (DMA), focusing on possible anti-competitive behavior in the cloud sector. The probe will look into issues like interoperability barriers, limits on data access, and bundling tactics, . In a separate development, through its first U.S. bond issuance since 2022, reflecting a broader move among tech firms to raise funds for AI infrastructure. The bond sale, which drew $80 billion in initial interest, follows similar financing efforts by Alphabet, Meta, and Oracle as these companies invest in AI-driven expansion .

by assigning a "AA-" rating to its proposed bond, citing the company's leadership in both e-commerce and cloud services. Despite short-term challenges in retail, and AWS's 25% yearly growth as major advantages. The agency over the medium term, driven by AWS's expansion and ongoing AI investments.

, but current employment trends indicate that rate cuts could begin as early as 2026. With job market weakness concentrated among smaller businesses and youth unemployment on the rise, to reduce interest rates and help support demand.