In April, layoffs in the United States declined, and job openings increased. This news is generally positive for American workers. However, certain sectors are facing layoffs that exceed the national average.
According to the Bureau of Labor and Statistics, layoffs have remained relatively steady this year. More Americans are quitting their jobs than are being laid off. Still, those who are laid off may find it challenging to get new employment due to the current ‘low hire, low fire’ setting in companies. Industries with elevated layoff rates include some of the most accessible for workers, regardless of education. Yet, these industries also tend to be volatile and less stable.
Construction
Construction ranks as the eighth-most prevalent industry, accounting for 4.8 percent of U.S. employment. In April, construction’s layoff rate was 1.5 percent, surpassing the national average of 1.1 percent. Layoffs in construction are not always indicative of broader sector weakness because construction is inherently cyclical. It is heavily influenced by seasonal changes, weather conditions, and fluctuations in the housing and infrastructure markets.
Current economic conditions are adding pressure. Higher borrowing costs have reduced homebuilding in certain areas. Uncertainty about future demand has led employers to be more cautious. The National Association of Home Builders reports rising prices of building materials, with increases exceeding those of the past three years.
Construction workers often face the challenge of moving between projects or employers to maintain steady employment. Alaska has experienced the largest job losses, with a 5.6 percent year-over-year drop. Mississippi and New Jersey followed with declines of 3.3 percent and 3 percent, respectively. Despite higher-than-average layoffs, construction overall showed job gains in April. Thirty-two states added jobs, with Florida seeing the largest increase.
Transportation, Warehousing, and Utilities
This sector, which includes delivery drivers, warehouse workers, and utility employees, ranks ninth in popularity and constitutes 3.9 percent of U.S. employment. In April, the layoff rate hit 1.8 percent, exceeding the national average. COVID-19’s aftermath spurred employment due to a rise in e-commerce. Now, as demand stabilizes, some firms are adjusting staffing.
Roles in this sector require minimal training, attracting a constant flow of workers. This makes it easy for employers to adjust staffing based on demand. Some companies have shut facilities or restructured due to new supply chain needs. Despite higher layoffs, job openings in the sector remain stable and are increasing compared to March, reflecting a 10-point jump from April 2025.
Accommodation and Food Services
Leisure and hospitality, comprising restaurants, hotels, and entertainment venues, is a prime example of a job sector with high layoffs. This industry is one of the largest employers in the nation, making up 8.4 percent of all employment. April’s layoff rate stood at 1.8 percent, significantly higher than the national average.
Economists consider hospitality a high-churn sector due to frequent job transitions. Seasonal changes, consumer spending shifts, and economic uncertainties drive volatility, causing cycles of hiring and layoffs. Among separations, most employees choose to leave. OysterLink, a job platform, found 66 percent left due to low pay or understaffing. Milos Eric from OysterLink stated that running operations lean can increase turnover costs rather than reduce labor costs.
Professional and Business Services
This sector, including consulting, administrative support, and temporary staffing, is the sixth-largest industry, accounting for 6.4 percent of U.S. employment. In April, layoffs were 2.0 percent, one of the highest among all sectors. This is significant as the sector includes a significant portion of white-collar jobs, alongside janitorial services.
Despite high layoffs, the sector saw month-over-month decreases. March had a layoff rate of 2.5 percent, the highest that year. In April, layoffs decreased compared to a year earlier. With 7.1 percent job openings in April, demand stays robust, indicating an active yet unsettled labor market. This suggests opportunities are available, though job security is less certain.
Are Layoffs Rising in the US?
The overall picture of layoffs is more nuanced than what headlines portray. According to JOLTS data, total layoffs in April were 1.1 percent, consistent with recent months. Nationally, layoffs aren’t escalating sharply.
The distribution of layoffs varies across industries. Some sectors, particularly those with large workforces, are experiencing higher rates. This can create a disconnect between national economic indicators and personal experiences. While the overall labor market appears stable, certain sectors feel less secure.
Economists describe the current climate as a ‘low-hire, low-fire’ market with cautious company activity. People aren’t frequently losing jobs, but those unemployed may face challenges finding new positions despite openings.
What Is the Unemployment Rate?
Despite industry differences, the national unemployment rate stays relatively low. As of April, it was 4.3 percent, indicating that most job-seekers are finding employment. The rate remains stable, marking positive developments for the nation.
Economists advise that the unemployment rate alone doesn’t fully depict workforce conditions. It doesn’t account for underemployment or those who have stopped job hunting. Other indicators like labor force participation and wage growth provide a fuller picture.
The latest data highlights a key aspect of today’s labor market: industries employing most Americans often have less stable employment. Sectors like hospitality, logistics, construction, and corporate services offer widespread access to jobs but display higher layoffs compared to stable sectors like healthcare or government.
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