U.S. layoffs drop nearly 40% in 2026 to four-year low, new data shows
Summary
Layoffs in the U.S. dropped nearly 40% through September 2026, reaching their lowest point in four years. Employers are hiring slightly more, showing that the job market is stable even as the Federal Reserve considers raising interest rates to control inflation.Key Facts
- U.S. employers announced 573,195 job cuts through September 2026, down nearly 40% from the same period in 2025.
- Monthly layoffs in September fell 20% compared to a year earlier, the lowest monthly level in four years.
- Hiring plans for 2026 increased by 3% compared to 2025, with employers planning to hire 210,612 workers so far this year.
- Initial jobless claims for the week ending September 26 dropped by 1,000 to 197,000, showing fewer new unemployment claims.
- The Job Openings and Labor Turnover Survey (JOLTS) showed steady worker separations but a 3.3% rise in hiring.
- The Federal Reserve raised interest rates recently due to inflation caused partly by higher energy costs linked to the Iran war.
- Economists expect more possible rate hikes later in 2026, with a 60% chance of an increase in December.
- Seasonal hiring plans for 2026 are cautious, with companies like Spirit Halloween reducing seasonal worker additions from 100,800 last year to 62,000 this year.
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