In the United States, layoffs decreased and job openings increased in April, offering positive news for many. However, certain sectors are experiencing higher layoff rates than average.
Industry-specific Layoffs
Data from the Bureau of Labor Statistics shows a stable pattern of layoffs throughout the year, with more Americans choosing to quit their jobs than being laid off. Yet, the challenge persists for laid-off Americans attempting to find new employment in a ‘low hire, low fire’ environment. Some industries with above-average layoff rates are more accessible to workers regardless of their educational background. Yet, this accessibility makes them more volatile and less stable.
Construction Industry
Construction ranks as the eighth-most popular industry, representing 4.8 percent of employment. In April, its layoff rate was 1.5 percent, above the national average of 1.1 percent. Layoffs in construction aren’t always indicative of broader issues. The sector is cyclical, with factors such as seasonal changes, weather, and fluctuations in housing and infrastructure affecting employment rates.
Current economic conditions, including higher borrowing costs, have impacted homebuilding. In addition, rising building material prices, highlighted by the National Association of Home Builders, have pressured the sector.
Despite this, construction saw overall job gains in April, with 32 states adding jobs compared to March. Florida experienced the largest increase, while the most significant job losses were in Alaska, Mississippi, and New Jersey.
Transportation, Warehousing and Utilities
This sector, including delivery drivers and warehouse workers, is the ninth-most popular industry, comprising 3.9 percent of employment. In April, the layoff rate peaked at 1.8 percent, surpassing the national average. Following a surge post-pandemic driven by e-commerce demand, the industry is now adjusting staffing levels.
The accessibility of jobs in this sector means employers can rapidly adjust staffing to demand changes. Job openings remain stable, with more available positions in April compared to March, marking a notable increase since April 2025.
Accommodation and Food Services
The leisure and hospitality sector, which includes restaurants and hotels, is the fifth-largest industry, accounting for 8.4 percent of employment. April’s layoff rate was 1.8 percent, considerably above the national average.
This sector is known for high turnover, with frequent job shifts often due to seasonal or economic fluctuations. Notably, 75 percent of job separations are voluntary.
According to OysterLink, many leave due to low pay or understaffing. OysterLink’s General Manager, Milos Eric, notes a cycle in the industry—understaffing leads to burnout, causing further turnover.
Professional and Business Services
This sector, covering consulting and administrative roles, is the sixth-largest industry, representing 6.4 percent of employment. April saw a 2.0 percent layoff rate, one of the highest in the economy.
Despite high layoffs, demand in the sector remains robust, with a 7.1 percent job openings rate in April. This suggests the labor market is active, posing both opportunities and job security concerns.
Analyzing Layoffs in the U.S.
Layoffs across U.S. industries present a complex picture. Total layoffs were 1.1 percent in April, consistent with recent months, indicating that national layoffs aren’t rising sharply. Yet, sectors with large workforces face varied layoff rates, leading to potential mismatches between macroeconomic indicators and individual experiences.
Economists describe the current situation as a ‘low-hire, low-fire’ market. While unemployment remains low at 4.3 percent, this figure doesn’t account for underemployment or discouraged workers and should be assessed alongside other indicators to understand the labor market fully.
Sectors like hospitality, logistics, construction, and corporate services draw large numbers of workers but also feature elevated layoff rates. This dynamic illustrates a trade-off—fast entry into the workforce often comes with higher disruption risks.