(The Hill) – Layoffs surged nearly 40 percent last month, with employers eliminating 85,979 positions — the largest August hit since the height of the COVID-19 pandemic in 2020, according to new research.

The analysis, released Thursday from the Challenger, Gray & Christmas consulting firm, noted that the cuts, which have hit the pharmaceutical, financial and retail industries especially hard this year, are likely linked to some of President Trump’s policies since his return to office in January.

To date, employers have made 892,362 cuts in 2025 — the most since 2020 when 1,963,458 cuts were announced from January to August amid the pandemic, according to the firm’s analysis.

The experts wrote that the White House’s Department of Government Efficiency (DOGE) and its sweeping cuts to the federal workforce likely had a ripple effect that prompted cutbacks. “DOGE actions” has been the top reason cited for job cuts and layoffs so far in 2025, per the analysis.

“After the impact of DOGE on the federal government, employers are citing economic and market factors as the driver of layoffs,” said Andrew Challenger, a labor expert and senior vice president at the firm. “We’ve also seen a spike in cuts due to operation or store closings and bankruptcies this year compared to last.”

The pharmaceutical industry, with 19,111 layoffs, and financial sector, with 18,092 cuts, saw the biggest losses last month.

“Economic uncertainty and market volatility have increased pressure on companies in finance to tighten belts,” Challenger said.

The retail sector also has been hit hard this year, the analysts found.

Retailers have eliminated 83,656 jobs this year through August — up 242 percent from the 24,489 cuts announced during the same period last year. Challenger cited the role that Trump’s tariff policies have likely played and could continue to have through the rest of the year.

“Retailers are being hard hit by tariffs, inflation, and ongoing economic uncertainty causing bankruptcies and closures,” he said. “If tariffs and consumer spending constraints play out, the approaching holiday shopping season may see fewer seasonal hires and, in fact, high layoffs.”

Challenger also noted that seasonal hiring tends to pick up in September each year.

“Coming off the lowest August on record for hiring plans, it may be a troubling sign,” he said.