The U.S. labor market continues to show complexity as new data surfaces. While there is overall job growth, layoffs persist across various industries. Data from ADP indicates that private employers added 90,000 jobs in September. Key sectors contributing to these gains include health care, education, and hospitality. However, job losses occurred in white-collar fields such as financial activities and professional and business services. These trends are expected to continue into October.
Why It Matters
Layoff announcements emerge during a period marked by mixed economic signals. Despite job creation, wage growth, and relatively low unemployment, hiring predominantly happens in health care and service-sector roles. This creates a challenging scenario for people seeking higher-paying office-based positions.
Companies Reporting Significant Layoffs
Data from WARN Act filings reveal the top companies planning layoffs this month. Several industries face substantial pressure, particularly financial services.
Financial Services
The ongoing impact on the labor market within the finance sector is noteworthy. In September, financial activities employers shed 16,000 jobs, classifying it as the weakest major sector in ADP’s report. Banks are restructuring after rapid expansion, leading to job losses. Factors such as higher borrowing costs, reduced lending, and AI advancements contribute to these changes. Wells Fargo, Bank of America, and Citigroup are among prominent banks appearing in WARN filings during 2026.
“Financial jobs are disappearing primarily because the industry is undergoing two transitions simultaneously, those being higher borrowing costs have weakened areas such as lending and real estate, while AI is allowing banks to perform many routine tasks with fewer employees,” stated Alex Beene, a financial literacy instructor at the University of Tennessee at Martin.
Professional and Business Services
The sector encompassing consulting, back-office functions, and corporate support also experienced a downturn, losing 11,000 jobs in September. This decline is linked to slower corporate spending and the integration of AI tools replacing certain roles.
“The easiest answer would be AI and the disappearance of entry-level jobs in the financial sector, but it may be deeper than that. The real answer probably lies somewhere between AI and interest rates. With higher interest rates comes reduced financial activity,” explained Kevin Thompson, CEO of 9i Capital Group.
What the Numbers Show
So far, the WARN database indicates that hundreds of thousands of employees received layoff notices this year. LayoffAlert.org highlights that over 317,000 workers have been impacted by 3,651 WARN notices across 44 states. Still, ADP’s recent report points to a resilient labor market. Education and health services added 55,000 jobs, while leisure and hospitality contributed 22,000, representing the majority of net job growth during the month.
“It’s a strong report. After a three-month slowdown, job creation rebounded and pay growth remained solid,” commented Nela Richardson, ADP Chief Economist.
Health care providers face worker shortages due to an aging population, and the hospitality industry is rebuilding its workforce. However, sectors offering entry-level office jobs struggle.
“Higher interest rates will curtail financial activity due to the cost of capital. We may see a slowing in that sector of the economy, but most of the heavy lifting is still in the broader technology space,” according to Thompson.
What Happens Next
The current economic situation presents a paradox. Despite ongoing hiring, many announced layoffs in October impact high-paying white-collar roles. Financial careers are not disappearing, but they are evolving. Jobs relying on repetitive tasks face pressure, while demand remains for analysts and those combining financial expertise with technology.
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