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Today's Job News: Looming Gov't Layoffs, LinkedIn CEO's Bold Future Of Work Prediction, & 2025 Cuts

• Pete Newsome

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Today's episode explores the significant impact of the ongoing government shutdown on federal employees, including the potential for permanent layoffs as warned by the White House. Pete also covers job market trends, with nearly a million job cuts announced so far in 2025. Additionally, LinkedIn CEO Ryan Roslansky shares transformative insights on the future of work, emphasizing adaptability and human qualities over traditional credentials. Tune in for these crucial updates and more! 

Pete Newsome:

Today's job market headlines include a profound statement from the LinkedIn CEO about the future of work and forecasted job cuts for the rest of the year. But first, the government shutdown that began October 1st is already taking a serious toll on federal employees. The White House is warning that permanent layoffs, not just furloughs, are coming very soon. Vice President J.D. Vance did mint words saying, if this thing drags on for another few days or, God forbid, another few weeks, we are going to have to lay people off. But there's a catch, according to the Federal News Network.

Pete Newsome:

They wrote, the federal RIF process, which is the reduction enforced process, takes months to complete since it involves complicated steps of prioritizing employees based on tenure, veterans' preference, length of service, and employee performance. The process can also open agencies to legal issues since federal employees may challenge RIF actions if they believe there were errors in the implementation. At this point, experts are questioning whether these layoffs can even be implemented quickly or legally.

Pete Newsome:

Since the administration is pressing forward anyway, the unions are already filing lawsuits to challenge the legality. And we've already seen at least one example. So what we know for sure is that some agencies aren't waiting. There's a lot of arguing, a lot of finger pointing right now. And for the labor market, the reality is that if hundreds of thousands of federal workers are laid off, even gradually, that will ripple through the private sector because industries, uh there are a lot of industries that rely heavily on government contracts and approvals.

Pete Newsome:

And so this shutdown goes way beyond just the employees themselves. It is everyone connected to the federal government, which is massive to say the least. So let's hope we see a resolution on this sooner than later.

Pete Newsome:

Speaking of the private sector, according to Challenger Gray and Christmas, U.S. employers announced just over 54,000 job cuts in September. That number is down 37% from August and 26% lower than the same month last year. At first glance, that sounds like a positive sign. But when you zoom out, the year-to-date picture is far more concerning. So far in 2025, companies have announced almost 950,000 job cuts, which is the highest since 2020, when of course the pandemic drove over 2 million layoffs.

Pete Newsome:

This year's total is already 55% higher than the same point we were at last year, and we're on track to surpass a million cuts in 2025. Challenger tracked 7,000 job cuts in September tied directly to AI, which brings this year's total to 17,000. So big jump last month in AI cuts specifically, and there were another 20,000 cuts linked to broader technology updates. If you combine that with low seasonal hiring announcements, we may see one of the weakest holiday hiring seasons in more than a decade.

Pete Newsome:

And so the takeaway from this is while the monthly numbers look better in September on the surface, the overall trend is still dismal, especially with the current government turmoil layered on top of broader economic uncertainty that has been in place all year. So not a good trend at all. I really want to report better news soon on the job market, but we're just not seeing it yet.

Pete Newsome:

And in the last headline today, an article from Business Insider shares some bold statements about the future of work that were made this week by LinkedIn CEO Ryan Rosalansky at LinkedIn's AI and Work Day. He argued that the playing field is shifting in a way that we've never seen before. He said, I think the mindset shift is probably the most exciting thing because my guess is the future of work belongs not anymore to the people that have the fanciest degrees or went to the best colleges, but to the people who are adaptable, forward-thinking, ready to learn, and ready to embrace these tools.

Pete Newsome:

The tools he refers to are, of course, AI. He also said, I believe the human component to all of this is quite frankly going to be most people's secret weapon. So empathy, communication, adaptability, and being able to just have a conversation with someone. I particularly like this statement because we know AI is inevitable, but as a result, human qualities will become more important, not less. Not everyone is a natural communicator, but everyone can and should work on improving and becoming better at it. Everyone has that opportunity. And the same thing goes for adaptability, which Karen Kimbrough, LinkedIn's chief economist, referred to as the new currency.

Pete Newsome:

So for many, that is much easier said than done. But being conscious of your limitations and if adaptability is one, if empathy is one, then that is a first step towards making progress and letting it not hold you back in your professional career. We all have strengths, we all have weaknesses, but identifying what yours are gives you the ability to work on it. And that is going to be significant going forward, especially as we see a bigger separation between technology from AI and the human element.

Pete Newsome:

And for employers to remain competitive, it's going to be necessary to realize the shifting perspectives regarding college degrees. I've been talking about that a lot lately. And I know that there are so many people still holding tight to that requirement. I mean, that old school thinking is out there for sure. But doing so is, as you go forward, is going to be very limited because we're seeing more top executives at the biggest, most successful companies sharing messages like this one. Is it it's just not as important as it once was.

Pete Newsome:

And in closing today, your fun fact is that Brad Pitt once worked as a mascot for a fast food chicken restaurant where he dressed up in a chicken costume. So Brad Pitt, the actor, acting as a chicken. It's not a normal role for him, but uh we can definitely imagine that too. So Brad Pitt can can do anything, even act as a chicken. So thank you for listening today. If you liked what you heard, please subscribe, share it with anyone you think might be interested. I welcome your feedback as always, and I look forward to talking to you tomorrow.