In April, the United States saw a decline in layoffs and a rise in job openings. Data from the Bureau of Labor and Statistics (BLS) shows that while layoffs remained steady, more Americans are quitting their jobs than being laid off. However, finding new employment can be challenging for those who have been laid off due to the ‘low hire, low fire’ environment many companies operate in.
Industries with Higher Layoff Rates
Some popular industries are experiencing layoffs above the national average. These sectors are accessible to many workers, regardless of educational background, but can also be volatile and less stable.
Construction
The construction industry, the eighth-largest in the U.S., contributes to 4.8 percent of employment. In April, layoffs in construction stood at 1.5 percent, higher than the national average of 1.1 percent. The industry is cyclical, influenced by seasonal changes, weather, and market fluctuations. Economic conditions are adding pressure, with higher borrowing costs and uncertainty about future demand.
The National Association of Home Builders points to rising material costs as a significant challenge. Construction workers often face periods of hiring booms followed by layoffs, requiring job transitions between projects or employers. Job losses have been notable in Alaska, Mississippi, and New Jersey, though 32 states saw employment growth in April, with the most significant gains in Florida.
Transportation, Warehousing, and Utilities
This sector includes roles such as delivery drivers and warehouse workers and accounts for 3.9 percent of employment. In April, its layoff rate was 1.8 percent. The industry expanded post-COVID due to increased e-commerce. However, demand has normalized, leading some companies to adjust staffing levels.
Despite higher-than-average layoffs, job openings have been stable, with increased openings from March to April, continuing a growth trend.
Accommodation and Food Services
Leisure and hospitality is a significant employment sector, representing 8.4 percent of U.S. jobs. Layoffs were at 1.8 percent in April, a high turnover rate attributed to seasonal and economic factors. Workers often leave due to low pay or understaffing, leading to a cycle of burnout and turnover, according to OysterLink, a job platform for the sector.
Professional and Business Services
This sector, essential to the white-collar workforce, saw a layoff rate of 2.0 percent in April. It covers a range of roles from consulting to temporary staffing, with 6.4 percent of U.S. employment. Despite high layoffs, demand remains strong, with a high percentage of job openings.
Are Layoffs Rising in the U.S.?
The overall layoff and discharge rate in the U.S. was 1.1 percent in April, showing little change from previous months. However, the layoff distribution varies significantly across industries. While the labor market remains stable nationally, certain sectors experience higher instability.
Economists refer to the current market as ‘low-hire, low-fire,’ indicating caution in hiring and layoffs. While the national unemployment rate is low at 4.3 percent, it does not account for underemployment or discouraged workers.
The current market reveals that popular job sectors, while readily accessible, offer less job security compared to more stable industries. Workers face a trade-off between accessing jobs quickly and managing workplace disruptions.