U.S. layoffs drop nearly 40% in 2026 to four-year low, new data shows
Hiring plans are up 3% so far this year, signaling the labor market remains resilient, experts say.
U.S. layoffs have dropped to a four-year low, with employers announcing 573,195 job cuts through September, a 40% decline from the same period last year, according to new labor data from Challenger, Gray & Christmas. The most recent monthly layoffs figure shows a 20% decrease to 43,281 in September, the lowest level in four years.
Despite this, hiring plans are up 3% this year, with employers adding an average of 71,000 new hires over the previous three months. While the labor market appears stable, hiring remains slower compared to post-pandemic years. Economists anticipate employers added 90,000 jobs in September, based on the Labor Department's upcoming monthly jobs report.
Jobless claims for the week ending September 26 declined to 197,000, signaling continued low unemployment despite limited hiring. The Job Openings and Labor Turnover Survey (JOLTS) data indicates that while worker separations are unchanged, hiring has risen. This suggests businesses are reluctant to let go of current employees while maintaining some hiring.
The Federal Reserve may raise interest rates to combat inflation, which could make it challenging for them to reduce inflation without raising rates.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
