U.S. manufacturing job cuts have risen to levels not seen since the 2009 financial crisis, excluding the early COVID-19 period, as factories face cost pressures and uncertain demand.

S&P Global reported that while manufacturing output showed modest improvement in June, it was largely driven by inventory rebuilding rather than strong underlying demand.

Economists warned that employment declines over several months reflect concerns about rising costs, supply disruptions, and the sustainability of recent growth.

Despite the weakness in factory hiring, overall U.S. job growth has remained relatively strong in 2026, CNBC has reported.

Broader economic activity, however, is still described as sluggish, with growth estimated at around a 1% annual pace.