As The Government Shutdown Drags On, Here Are 9 Signs That The U.S. Economy Is Shutting Down All Around Us

October 28, 2025 by Michael



It appears that this government shutdown could go on for a while, and that is not good news for the U.S. economy at all. On day 28 of the shutdown, the U.S. Senate failed to advance a bill to end the shutdown for the 13th consecutive time. They can keep holding more votes, but the outcome will remain the same. We are potentially just days away from a scenario in which approximately 42 million Americans will lose their food stamp benefits, and that could result in widespread chaos all over the nation. Meanwhile, the U.S. economy as a whole continues to move in the wrong direction very rapidly.

At this point, dissatisfaction with the economy has become so pervasive that even CNN is talking about it…
A collective angst is taking root. Maybe you feel it watching the news, scrolling social media, standing in line at the grocery checkout. Something’s off, and maybe it’s been that way for a while, but it hasn’t always been this tense, right?
I am sure that you can feel it too.
People are on edge.
Thousands of stores have been closing all over the nation, the cost of just about everything keeps going up, and shocking mass layoffs are being conducted from coast to coast. The following are 9 signs that the U.S. economy is shutting down all around us…
#1 When the economy is booming, delivery companies are usually thriving and hiring lots of new people. So it is a really bad sign that UPS has chosen to eliminate 48,000 workers…

United Parcel Service has cut 48,000 management and operations positions, the company disclosed Tuesday when it reported earnings.
Of those roles, 14,000 were management positions and 34,000 were jobs in operations. The reductions came through layoffs and buyouts, the company said.
#2 14,000 Amazon employees have been let go in “the first wave” of mass layoffs that are ultimately expected to reduce the number of workers by 30,000…
On Tuesday, Amazon confirmed plans to cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
It’s the first wave in a mass layoff that’s expected to slash 30,000 Amazon positions, or 10 percent of the corporate staff.
‘Some may ask why we’re reducing roles when the company is performing well,’ Beth Galetti, an HR lead at Amazon, wrote in a public note.

#3 Target has announced that approximately 1,000 highly paid corporate workers will be hitting the bricks…
Target is cutting about 1,000 corporate positions and eliminating 800 open roles in an effort to speed up business decision-making and drive growth under its new chief executive, Michael Fiddelke.
Fiddelke, who will succeed Brian Cornell as CEO in February, has been focused on ways to speed up the way corporate teams work, turning the company into a leaner and faster organization to drive innovation. This includes eliminating layers of management.
About 80% of the roles being cut are based in the U.S., with the majority concentrated in the Minneapolis area, where the company is headquartered, and in leadership positions.
#4 Chegg has fallen on really hard times, and so it will be slashing 45 percent of its entire workforce…

Chegg Inc., a Santa Clara-based online learning platform, said Monday it will cut about 45% of its workforce – roughly 388 employees – as it confronts what it calls “the new realities of AI and reduced traffic from Google to content publishers.”
In its official statement, the company said the restructuring plan reflects “a significant decline in Chegg’s traffic and revenue,” which it has attributed to shifts in generative AI and changing search patterns.
#5 Brighter days were supposed to be ahead for Paramount, but we have just learned that about 1,000 jobs are now on the chopping block…
Paramount will slash roughly 1,000 jobs on Wednesday, Fox News Digital has confirmed.
A headcount reduction has been expected since Paramount Global and Skydance merged earlier this year, putting CEO David Ellison in charge of the newly formed Paramount, a Skydance Corporation. Sources familiar with the situation said that “approximately” 1,000 positions will be cut as layoffs begin.
#6 The job cuts that are happening at Nestle are particularly brutal. The new CEO has decided to give the axe to 16,000 loyal employees…
Nestle will cut 16,000 jobs, new CEO Philipp Navratil said on Thursday, as the world’s largest packaged food company seeks to cut costs and win back investor confidence.
The jobs being cut represent 5.8% of Nestle’s around 277,000 employees. Navratil said Nestle had raised its cost savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027.

#7 Have you ever heard of a candy company filing for bankruptcy right before Halloween? Yes, that actually just happened…
A hugely popular candy company has filed for bankruptcy just days before Halloween — the biggest candy-buying week of the year.
Candy Warehouse, an online store that sells more than 6,000 types of sweets in bulk to families as well as other businesses, filed for bankruptcy protection on October 24.
The timing is especially striking, coming right before a holiday that’s all about candy.
#8 It is not a good time to be in the baby business. Carter’s is telling us that it now plans to permanently close approximately 150 stores in North America…
Carter’s, the Atlanta-based baby clothing chain behind brands like OshKosh B’gosh, Otter Avenue, and Skip Hop, says it will shut down about 150 stores across North America.
That’s up from its earlier plan to close 100 underperforming locations.
#9 The Westminster Mall was once “the second-highest grossing retail site in the US”, but now it is being shut down forever…
In 1986, it was the second-highest grossing retail site in the US, according to the Times. Chains like Macy’s, Sears, JCPenney, Target, Best Buy, Old Navy, and Spencer’s all had a shop in the mall.
Its over 1 million square foot floor plan spanned two levels and even featured a carousel. It was developed on an old goldfish farm.
But, after 51 years, developers are ending most of the store’s leases and turning the property’s 100-acres into a 3,000-unit housing project.

The primary reason why so many retailers are going belly up is because most U.S. consumers are tapped out.
In fact, almost half of the average paycheck in the United States “is spent within 48 hours of payday”…

  • Nearly half (48%) of the average American paycheck is spent within 48 hours of payday, with over a third gone in just 12 hours
  • Millennials spend the fastest, burning through 40% of their earnings within the first 12 hours, which is more than any other generation
  • Gen Z workers paid $275 in overdraft and late fees over the past year, compared to just $27 for baby boomers, a ten-to-one gap
  • Among stressed workers, 62% say being paid daily or as they work would improve their financial wellness and cut stress by an average of 57%

We are a nation that is teetering on the brink, and it isn’t going to take much to push us over the edge.
So let us hope that the government shutdown is resolved soon.
Unfortunately, I don’t think that is going to happen.
In just a few weeks, things could look very different than they do now.
There is so much anger percolating under the surface, and we are rapidly approaching a boiling point.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

As The Government Shutdown Drags On, Here Are 9 Signs That The U.S. Economy Is Shutting Down All Around Us