Layoffs and Job Openings: An Analysis of Key U.S. Industries

In April, the United States saw a decrease in layoffs coupled with a rise in job openings. This presents positive news overall. Despite this, some popular industries are experiencing layoffs above the national average.

Data from the Bureau of Labor and Statistics (BLS) shows that layoffs have remained stable this year. More Americans are choosing to leave their jobs voluntarily rather than being laid off. Yet, those who are laid off face challenges in finding new employment due to a cautious hiring environment.

Industries with Above-Average Layoffs

Construction

The construction industry accounts for 4.8% of U.S. employment and ranks as the eighth most popular sector. In April, it recorded a 1.5% layoff rate, higher than the national average of 1.1%. Seasonal changes, weather conditions, and the housing and infrastructure markets heavily influence this cyclical sector.

Current economic conditions, like increased borrowing costs, have slowed homebuilding. This leads to employer caution. The National Association of Home Builders cites rising construction costs as an ongoing issue. The sector’s job losses were prominent in Alaska, Mississippi, and New Jersey.

Despite the higher layoff rate, the industry experienced job gains in 32 states. Florida had the most significant increases.

Transportation, Warehousing, and Utilities

This sector includes delivery drivers, warehouse workers, and utility employees. It makes up 3.9% of all U.S. employment and saw a 1.8% layoff rate in April. The COVID-19 pandemic had initially spurred job growth here due to increased e-commerce demand. Still, the sector now adjusts staffing to stabilized demand.

Some companies have adapted their operations to new supply chain realities, resulting in facility closures and layoffs. Nonetheless, job openings have remained steady, with an increase noted from March to April.

Accommodation and Food Services

This industry covers restaurants, hotels, and entertainment venues. It is one of the largest employers, with 8.4% of all U.S. jobs. The sector had a 1.8% layoff rate in April, notably above average.

Hospitality is a high-churn sector, where job turnover is frequent due to seasonal and economic factors. About 75% of separations result from voluntary resignations, often due to low pay or understaffing. Milos Eric of OysterLink notes this cycle contributes to high turnover costs.

Professional and Business Services

This sector includes consulting, administrative support, and temporary staffing, accounting for 6.4% of U.S. employment. The layoff rate here was 2.0% in April, among the highest nationally.

While there has been a decline in layoffs from March, job demand remains strong, with a 7.1% opening rate in April. This creates a market with opportunities but uncertain job security.

The Layoff Trend

Overall, U.S. layoffs stood at 1.1% in April, indicating stable rates. However, some sectors face higher layoffs, contributing to discrepancies in workers’ experiences. The current “low-hire, low-fire” environment shows cautiousness among employers.

Understanding Unemployment

The national unemployment rate was 4.3% in April, suggesting many job seekers find employment. Nonetheless, underemployment and discouraged workers complicate this picture.

The latest data emphasizes the variability in job stability across industries. Sectors like hospitality, logistics, construction, and corporate services offer broad job access but also present higher layoff risks than fields like healthcare or government.

The trade-off between entry opportunities and job security is clear. While these sectors provide quick entry into the workforce, they also come with increased risks of employment disruption.