About 1.71 million people were laid off or discharged from their jobs in May 2026, according to new data published by USAFacts on July 1, 2026. The figure captures all types of employment terminations initiated by employers, including permanent layoffs, temporary separations, and job cuts from mergers, downsizing, company closures, or performance issues. Through the first five months of 2026, layoffs and discharges totaled 8.63 million, running 0.64% lower than the same period in 2025.
The layoff and discharge rate — which measures layoffs as a percentage of all employed workers — stood at 1.1% in May 2026, matching the average over the previous 12 months. The report shows the 12-month rolling average layoff rate declined from 1.6% in 2001 to 1.2% just before the COVID-19 pandemic, aside from a recession-related spike in 2008 and 2009. The rate hit a record high of 2.4% in 2020 during pandemic-related disruptions, then dropped to a record low of 0.9% in 2021 and 2022 before settling at 1.1% for all of 2025. Layoff rates varied significantly by industry in May 2026, ranging from 2.1% in construction — the highest — to just 0.4% in government, the lowest. Seven industries posted May 2026 layoff rates below their three-year average (May 2023–April 2026): financial activities, leisure and hospitality, manufacturing, mining and logging, other services, professional and business services, and retail trade. Six industries exceeded their three-year average: construction, government, information, private education and health services, transportation, warehousing, and utilities, and wholesale trade. State-level data from December 2025 showed layoff rates ranged from 0.7% in Washington, DC to 2.1% in Idaho, though the Bureau of Labor Statistics announced in February 2026 that state data would shift from monthly to annual release, to be published each July.
The report notes that layoffs are "a constant in the US labor market," with more than 20 million occurring annually from 2001 to 2019. According to the USAFacts analysis, increases in layoffs "often reflect recessions or other economic disruption," with March and April 2020 setting records because of COVID-19. The report emphasizes that the layoff and discharge rate "allows for better comparisons across time, industries, and places by adjusting for differences in the size of the working population," making it a more reliable measure than raw numbers alone.
The report explains that layoff rates vary across industries "which experience different economic pressures and are dependent on different types of workers or technologies." Construction's high layoff rate of 2.1% reflects the volatile nature of project-based work, while government's low 0.4% rate points to greater job stability in public-sector positions. The 12-month rolling average smooths out month-to-month noise to reveal longer-term trends — a useful lens given that employment data can swing sharply in individual months. The report also notes that state-level differences stem from "the economic vitality and the industry profile of the region," meaning states with construction-heavy or tourism-dependent economies may see higher layoff rates than those anchored by stable government jobs or tech hubs.
Layoffs remain slightly below last year's pace, with the first five months of 2026 posting a modest 0.64% decline compared to the same stretch in 2025. The current 1.1% layoff rate sits above the record lows of 2021–2022 but well below the pandemic peak of 2.4% and even the pre-pandemic norm of 1.2%. With layoffs holding steady and industry patterns showing mixed signals — some sectors cooling, others heating up — the labor market appears to be settling into a new equilibrium after years of extreme swings.