Layoff Statistics 2026: 1.6M Layoffs a Month, 617,189 Announced Cuts, and the 1-in-27 Gap Between Them
Two numbers dominate layoff headlines, and they measure completely different things. The Challenger, Gray & Christmas report counts job cuts that employers announce — press releases, WARN notices, news reports. The Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) counts layoffs and discharges that actually happen, from a survey of employers of every size, including the small businesses that never issue a press release. The first runs to the hundreds of thousands a year; the second to more than twenty million.
This page puts both side by side, adds the Department of Labor's weekly unemployment-insurance claims and the BLS Displaced Worker Survey on what happens to people afterwards, and labels every figure with its source, period and scope. Every number was checked against the primary publication on 9 November 2026. Our own derived metrics are marked as such, with the arithmetic shown.
Layoff benchmark cheat sheet
The figures most often needed for an article, a board paper or a workforce plan. Full sources are in the methodology section.
| Benchmark | Figure | Source and scope |
|---|---|---|
| Monthly layoffs and discharges | 1,641,000 (rate 1.0%) | BLS JOLTS, September 2026, total nonfarm, preliminary |
| Same month a year earlier | 1,816,000 (rate 1.1%) | BLS JOLTS, September 2025 |
| Annual layoffs and discharges | 21.2 million (+1.2 million) | BLS JOLTS, 2025 |
| Layoffs as a share of all separations | 33.8% (quits 60.6%) | BLS JOLTS, 2025 |
| Monthly quits | 3,365,000 (rate 2.1%) | BLS JOLTS, September 2026 |
| Highest-rate industry | Arts, entertainment and recreation, 3.5% | BLS JOLTS, September 2026 |
| Announced job cuts, year to date | 617,189 (−44%) | Challenger, January–October 2026 |
| Announced job cuts, full year 2025 | 1,206,374 (+58%) | Challenger, highest since 2020 |
| Cuts attributed to AI | 121,401 in 2026; 193,226 since 2023 | Challenger, through October 2026 |
| Initial unemployment claims | 189,000 a week | US DOL, week ending October 31, 2026, seasonally adjusted |
| Continued claims | 1,718,000 | US DOL, week ending October 24, 2026 |
| Long-tenured workers displaced | 3.3 million | BLS Displaced Worker Survey, 2023–2025 |
| Re-employed by survey date | 66.1% | BLS, January 2026 |
| Earning as much or more in the new job | About 49% (about 62% two years earlier) | BLS, full-time job losers re-employed full-time |
| WARN Act notice period | 60 calendar days | 20 CFR Part 639, employers with 100+ employees |
1. How many people are laid off each month
US employers recorded 1,641,000 layoffs and discharges in September 2026, a rate of 1.0% of employment, according to the JOLTS release of November 3, 2026. That was 127,000 fewer than in August and 175,000 fewer than in September 2025. The private sector accounted for 1,559,000 of them (1.1%); government for 82,000 (0.4%), of which only 5,000 were federal.
| Month | Layoffs and discharges | Rate | Quits | Job openings |
|---|---|---|---|---|
| September 2025 | 1,816,000 | 1.1% | 2,990,000 | 7,169,000 |
| June 2026 | 1,785,000 | 1.1% | 3,213,000 | 7,182,000 |
| July 2026 | 1,702,000 | 1.1% | 3,089,000 | 7,335,000 |
| August 2026 | 1,768,000 | 1.1% | 3,044,000 | 7,190,000 |
| September 2026 (p) | 1,641,000 | 1.0% | 3,365,000 | 7,523,000 |
Source: BLS JOLTS, total nonfarm, seasonally adjusted. (p) = preliminary; BLS revises each month once, in the following release. Hires in September 2026 were 5.4 million (3.4%) and total separations 5.3 million (3.3%).
2. Are layoffs going up? The long-run trend
Not by the measure that counts. BLS put annual layoffs and discharges at 21.2 million in 2025, 1.2 million more than in 2024 and up every year since the record low of 2021 — but the monthly rate in 2026 has averaged 1.08%, below the pre-pandemic 2019 average of 1.21%. The series low of 0.9% was last seen in June 2024; the high was 8.6% in March 2020, when 12,985,000 people were laid off in a single month.
| Year | Layoffs and discharges (sum of months) | Average monthly rate | Quits per layoff |
|---|---|---|---|
| 2019 | 21.8 million | 1.21% | 1.93 |
| 2020 | 41.0 million | 2.40% | 0.88 |
| 2021 | 17.0 million | 0.97% | 2.80 |
| 2022 | 17.6 million | 0.96% | 2.87 |
| 2023 | 19.8 million | 1.07% | 2.23 |
| 2024 | 20.1 million | 1.06% | 1.95 |
| 2025 | 21.2 million | 1.12% | 1.80 |
| 2026 (Jan–Sep) | 15.6 million | 1.08% | 1.81 |
Our calculation from the seasonally adjusted BLS JOLTS monthly series (total nonfarm). Sums of seasonally adjusted months differ slightly from BLS's published unadjusted annual totals; for 2025 the two agree at 21.2 million.
Average monthly layoff and discharge rate, 2019–2026
Percent of employment, BLS JOLTS total nonfarm. Bars drawn to scale on 0–2.4%.
Layoffs rose for three years running, yet the 2026 layoff rate is still below 2019's. The count is higher mainly because there are more jobs to lose.
3. Layoffs by industry
Layoff rates vary by a factor of almost nine between industries. In September 2026 the highest was arts, entertainment and recreation at 3.5% — 3.5 times the all-industry rate, as summer seasonal work ended — and the lowest was government at 0.4%. By volume, professional and business services alone accounted for 419,000 layoffs, 26.9% of the private total; leisure and hospitality added 244,000 (15.7%).
Layoff and discharge rate by industry, September 2026
Percent of employment, BLS JOLTS (preliminary). All-industry rate: 1.0%. Drawn to scale on 0–3.5%.
| Industry | Layoffs, Sept 2026 | Rate | Quits, Sept 2026 | Quits per layoff (ours) |
|---|---|---|---|---|
| Professional and business services | 419,000 | 1.9% | 463,000 | 1.1 |
| Leisure and hospitality | 244,000 | 1.4% | 752,000 | 3.1 |
| Retail trade | 151,000 | 1.0% | 475,000 | 3.1 |
| Health care and social assistance | 154,000 | 0.6% | 479,000 | 3.1 |
| Construction | 138,000 | 1.6% | 198,000 | 1.4 |
| Transportation, warehousing, utilities | 113,000 | 1.6% | 159,000 | 1.4 |
| Manufacturing | 99,000 | 0.8% | 199,000 | 2.0 |
| Arts, entertainment, recreation | 92,000 | 3.5% | 33,000 | 0.4 |
| Financial activities | 58,000 | 0.6% | 97,000 | 1.7 |
| Information | 46,000 | 1.7% | 39,000 | 0.8 |
| Government | 82,000 | 0.4% | 178,000 | 2.2 |
Source: BLS JOLTS Tables 4 and 5, September 2026 (preliminary). Quits per layoff is our ratio. In the information sector and in arts and recreation, more people were let go than chose to leave; in health care, retail and hospitality, three people quit for every one laid off — a retention problem, not a downsizing one. By region, the Northeast had the highest layoff rate (1.3%), against 1.0% in the South and 0.9% in the Midwest and West.
4. Announced job cuts: what the Challenger report shows
Employers announced 43,994 job cuts in October 2026, up 2% from September but down 71% from 153,074 in October 2025, according to Challenger, Gray & Christmas. Through October the total was 617,189, down 44% on the same period of 2025 and the lowest since 2022. Challenger's own summary: "This is a low-fire environment."
2025 was the opposite. Employers announced 1,206,374 job cuts in 2025, up 58% from 761,358 in 2024 and the seventh-highest year since 1989. Government led with 308,167 cuts, almost all federal, and "DOGE Actions" was the single most-cited reason, with 293,753.
Announced job cuts by industry, January–October 2026
Challenger, Gray & Christmas, top ten industries. Drawn to scale on 0–171,501.
Technology's 171,501 cuts are up 21% on 2025 and are 28% of everything announced this year. The biggest increases are in FinTech (+543%), Transportation (+188%) and Food (+43%); the steepest fall is Government (−93%), as the federal reductions of early 2025 dropped out. Twenty-two of the 30 industries Challenger tracks are below last year. By state, California leads with 124,850 cuts (20% of the total), followed by Washington (59,546) and Texas (46,528).
Why companies say they are cutting
| Reason cited | Cuts, Jan–Oct 2026 | Share of 617,189 (ours) | Full year 2025 |
|---|---|---|---|
| Market / economic conditions | 130,531 | 21.1% | 253,206 |
| Artificial intelligence | 121,401 | 19.7% | 54,836 |
| Closings | 109,342 | 17.7% | 191,480 |
| Restructuring | 85,391 | 13.8% | 133,611 |
| Demand downturn | 21,347 | 3.5% | — |
| DOGE actions | — | — | 293,753 |
Source: Challenger October 2026 and 2025 year-end reports. AI-attributed cuts in 2026 are already more than double the 2025 total, but AI was cited for only 1,265 cuts in October, its lowest month of the year. Since 2023, when Challenger began tracking it, AI has been cited in 193,226 announced cuts. An announced cut citing AI is a company's stated reason, not an independent measurement of jobs automated away.
5. Quits vs layoffs: the ratio that shows who holds the power
Dividing quits by layoffs gives a simple read on the labour market from the worker's side. When the ratio is high, people leave because they want to; when it falls below one, more jobs end on the employer's initiative than the employee's. In September 2026 the ratio was 2.05 — 3,365,000 quits against 1,641,000 layoffs and discharges — the highest since March 2025.
Quits per layoff or discharge, selected periods
Our calculation from BLS JOLTS (total nonfarm, seasonally adjusted). Drawn to scale on 0–2.87.
The single-month extremes in the series (which starts in December 2000): 0.22 in April 2020, when 9.2 million layoffs swamped quits, and 3.43 in April 2022. For an employer the practical point is that, even in a year of headline layoffs, roughly twice as many employees walk out voluntarily as are pushed — which is why our turnover statistics and retention strategies matter more to most teams than the layoff headlines do.
6. Unemployment claims: the weekly layoff signal
The Department of Labor's weekly count of initial unemployment-insurance claims is the fastest official layoff indicator. Seasonally adjusted initial claims were 189,000 in the week ending October 31, 2026 — equal to the July 18 reading as the lowest since September 1969 in the current series. Claims have averaged 208,000 a week so far in 2026, against 226,000 in 2025 and 218,000 in 2019; the peak was 6,137,000 in the week ending April 4, 2020.
Continued claims — people still receiving benefits — were 1,718,000 in the week ending October 24, above the 2019 average of about 1.68 million. Low initial claims with relatively high continued claims is the "low-fire, low-hire" pattern Challenger describes: few people are being let go, but those who are take longer to find work. Not every laid-off worker files a claim, so the weekly figure is far below the JOLTS count.
7. What happens to people after a layoff
The BLS Displaced Worker Survey, run every two years as a supplement to the Current Population Survey, follows people who lost a job because their plant closed, there was not enough work, or their position was abolished. The latest, published August 27, 2026, covers 2023–2025: 3.3 million workers lost jobs they had held for at least three years, up 746,000 on the previous survey. Including shorter-tenured workers, 7.4 million were displaced.
| Long-tenured displaced workers | January 2024 survey (2021–23) | January 2026 survey (2023–25) |
|---|---|---|
| Number displaced | 2.6 million | 3.3 million |
| Re-employed | 65.7% | 66.1% |
| Unemployed | 16.1% | 18.3% |
| Out of the labour force | 18.2% | 15.7% |
| Earning as much or more (full-time to full-time) | About 62% | About 49% |
| Received written advance notice | About 46% | About 45% |
The reasons for job loss in 2023–2025 were a position or shift abolished (44.4%), a plant or company closed or moved (32.6%) and insufficient work (22.9%). Manufacturing accounted for 642,000 displaced workers (19%), professional and business services 16% and retail 10%.
Re-employment rate of long-tenured displaced workers by age, January 2026
BLS Displaced Worker Survey, workers displaced 2023–2025. Bars on 0–100%.
Two details stand out. First, written notice did not change outcomes: BLS found that re-employment rates did not differ significantly between workers who received advance notice and those who did not. Second, pay is where the damage now shows — the share of re-employed full-time workers earning at least their old wage fell by about 13 percentage points in two years, the clearest sign in this survey that the 2026 job market is harder for people coming out of a layoff than the low headline numbers suggest.
8. The legal thresholds: WARN Act in numbers
In the US, the Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to give 60 calendar days' notice of plant closings and mass layoffs. Under the Department of Labor's regulations (20 CFR Part 639):
| Rule | Threshold |
|---|---|
| Covered employer | 100 or more employees excluding part-time, or 100+ including part-time who together work at least 4,000 hours a week |
| Plant closing | Shutdown of a single site (or unit within it) causing employment loss for 50+ full-time employees in any 30-day period |
| Mass layoff | Employment loss at a single site in any 30-day period for at least 50 full-time employees and at least 33% of them — or 500+ employees regardless of percentage |
| Notice period | 60 calendar days |
Several states have their own "mini-WARN" laws with lower thresholds or longer notice; check the state rules before relying on the federal ones. The federal regulations also encourage notice where it is not required.
9. What the numbers mean for employers
Plan for quits, not just cuts
Two quits for every layoff means voluntary turnover is still the bigger cost for most teams. Budget recognition and retention as if the market were tight — in health care, retail and hospitality it is.
Look after the people who stay
After a reduction, the remaining team absorbs the work. Make recognition specific and frequent, and keep it visibly fair — see the cost of recognition debt.
Don't read Challenger as a headcount
Announced cuts are about 1 in 27 actual layoffs. Benchmark your own separation rate against JOLTS for your industry instead.
Notice is necessary, not sufficient
WARN notice is a legal duty, but BLS finds it does not by itself improve re-employment. Outplacement, a reference and a clean exit do more for the people leaving and for the reputation of the employer.
Key takeaways
- About 1.6 million US layoffs and discharges happen every month — 21.2 million in 2025 — at a rate (1.0–1.1%) still below 2019.
- Announced job cuts are down 44% in 2026 to 617,189, after 1,206,374 in 2025, the highest since 2020; technology accounts for 28% of this year's total.
- Only about 1 in 27 actual layoffs shows up in announcements, so the Challenger number measures the news, not the labour market.
- Twice as many people quit as are laid off, and weekly jobless claims are at their lowest since 1969 — a low-fire, low-hire market.
- For people who are laid off, it is harder: one in three long-tenured workers had no new job by the survey, and only about half of the re-employed earn what they did.
Keep the team you have
In a low-fire, low-hire market the cheapest hire is the one you never have to make. Rewordin lets you send digital gift cards in 150+ countries and local currencies in seconds, so recognition reaches every person who is carrying the extra load.
Methodology and sources
Every figure on this page was checked against the primary publication on 9 November 2026. JOLTS figures are seasonally adjusted, total nonfarm unless stated, and the September 2026 month is preliminary; we used the BLS news-release tables and, for the history back to December 2000, the same BLS series as distributed by the Federal Reserve Bank of St. Louis (FRED series JTSLDL, JTSLDR, JTSQUL, JTSJOL). Weekly claims are the DOL seasonally adjusted series (FRED ICSA and CCSA). Challenger figures are announced cuts by US-based employers as published in its monthly reports. We did not use vendor or tracker estimates whose methods we could not open and check.
Derived metrics (ours, recomputable from the tables above): the layoff clock (1,641,000 ÷ 43,200 minutes in September); annual sums and average rates of the monthly JOLTS series; the announcement gap (Challenger January–September 2026 cuts, 617,189 minus October's 43,994, divided by the JOLTS January–September sum; and 2025 full year against BLS's 21.2 million); quits per layoff by period and by industry; industry shares of private layoffs; reason shares of Challenger's year-to-date total; and claims averages. JOLTS inputs are rounded to thousands, so ratios carry small rounding error.
About the authors
Maciej is the founder and CEO of Rewordin, a global employee rewards and recognition platform delivering gift cards in 150+ countries. He works directly with HR, People Ops and finance teams on reward and retention programmes and writes about the research behind them. Based in Wrocław, Poland. Connect on LinkedIn →
Natalia is the CFO of Rewordin and co-reviewer of every quantitative claim published on the platform — including the announcement gap in section 4 and the quits-per-layoff ratios in sections 3 and 5, all published with their inputs rather than as survey findings. Connect on LinkedIn →
How many people get laid off each month in the US?
About 1.6–1.8 million. BLS JOLTS recorded 1,641,000 layoffs and discharges in September 2026, a rate of 1.0% of employment, and 21.2 million for the whole of 2025. The figure includes dismissals for cause as well as economic layoffs.
Are layoffs increasing in 2026?
No. Announced job cuts through October 2026 were 617,189, down 44% from the same period of 2025 (Challenger), and the JOLTS layoff rate has averaged 1.08% in 2026 against 1.12% in 2025. Weekly initial jobless claims fell to 189,000 at the end of October, the joint-lowest since 1969.
How many layoffs were there in 2025?
BLS counted 21.2 million layoffs and discharges in 2025, up 1.2 million from 2024. Employers publicly announced 1,206,374 job cuts that year, the most since 2020, led by the federal government (308,167) and technology (154,445).
How many layoffs are caused by AI?
Challenger counted 121,401 announced job cuts in 2026 through October where employers cited artificial intelligence, about 20% of all announced cuts, and 193,226 since it began tracking the reason in 2023. These are stated reasons in announcements, not a measurement of jobs automated away.
Which industry has the most layoffs?
By number, professional and business services (419,000 layoffs and discharges in September 2026). By rate, arts, entertainment and recreation (3.5%). In announced cuts, technology leads 2026 with 171,501, 28% of the total.
How long does it take to find a job after a layoff?
The BLS Displaced Worker Survey found that 66.1% of long-tenured workers displaced in 2023–2025 had a new job by January 2026, 18.3% were still unemployed and 15.7% had left the labour force. Re-employment falls sharply with age: 72.9% for ages 25–54, 57.3% for 55–64 and 38.6% for 65 and older.
How much notice is required before a mass layoff?
Under the federal WARN Act, employers with 100 or more employees must give 60 calendar days' notice of a plant closing (50+ employees losing jobs at one site) or a mass layoff (50+ employees and at least 33% of the site, or 500+ employees). Some states require more.