US layoffs fall to four-year low in August

  • US employers announced 52,881 job cuts in August 2026, the lowest in four years.
  • Layoffs fell 38% from a year ago with the year-to-date total down 41% from 2025.
  • Technology led YTD with more than 155,000 cuts while restructuring was the top reason for August reductions.

US employers announced 52,881 job cuts in August, the lowest level in four years and down 38% from the same month a year ago, according to Challenger, Gray & Christmas. Announced layoffs through August reached nearly 530,000, down 41% from 2025. Technology announced the most cuts of any sector with over 155,000 through the first eight months. The consumer products industry led August with more than 10,000 layoffs, followed by food and technology. Artificial intelligence was not a main driver, with restructuring cited as the leading reason followed by market and economic conditions. The unemployment rate fell to 4.1% in July despite a reversal in job growth, with employers shedding 23,000 jobs that month. Companies are planning to hire more workers than last year but hiring does not appear to be accelerating quickly.

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