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Industries that laid off the most workers in October
World economies were left in disarray after the COVID-19 pandemic shocked supply chains and deeply affected the global workforce—and the U.S. was no exception.
As financial rescue efforts fade into the background, the U.S. economy faces dual crises of stubbornly lingering inflation and persistent uncertainty about a looming downturn stemming from central banks’ own prescription for combating inflation: higher interest rates.
Companies spent 2022 and 2023 pulling back on spending and new hires, moving forward cautiously. About 1.6 million people were laid off or fired in October 2023 nationwide, up about 2% from the previous month and about 8% from the same time last year.
Stacker used Bureau of Labor Statistics data to rank 19 major industries by the number of layoffs they had in October 2023. The analysis uses seasonally adjusted data. Numbers for the month are preliminary and may be updated.
#19. Mining and logging
– October 2023 layoffs: 7,000
— Change from prior month: -2,000
— Change from October 2022: +3,000
– October 2023 layoff rate: 1.1% (Rank: #7)
— Change from prior month: -0.3 percentage points
— Change from October 2022: +0.4 percentage points
The mining and logging industry includes oil and gas workers and workers who cut timber and produce wood for residential construction. The logging industry faced an unseasonably warm winter in some parts of the U.S. and rising costs, which business leaders have cited as the reason for workforce cuts. Worldwide, as economies shift toward clean energy, over 400,000 mining workers are expected to be laid off by 2035—largely in China and India, but also affecting workers in the U.S. and other countries.
#18. Federal government
– October 2023 layoffs: 8,000
— Change from prior month: No change
— Change from October 2022: +1,000
– October 2023 layoff rate: 0.3% (Rank: #18)
— Change from prior month: No change
— Change from October 2022: +0.1 percentage points
While Congress approved a temporary funding package— evading a government shutdown for now—the federal government still hasn’t agreed upon a 2024 budget. Millions of federal workers will face potential furloughs on Jan. 19 and Feb. 2, depending on their agencies, if a new budget isn’t finalized. Spending cuts could lead to further layoffs, depending on how the permanent federal budget shakes out.
The federal government represents around 6% of all jobs in the country including the military, the Departments of Labor, Education, and Justice, and other federal agencies—as well as the U.S. Postal Service. The size of the federal government’s payroll has “significantly” decreased over the last 50 years, according to the nonpartisan Brookings Institution.
#17. Information
– October 2023 layoffs: 18,000
— Change from prior month: -6,000
— Change from October 2022: -29,000
– October 2023 layoff rate: 0.6% (Rank: #15)
— Change from prior month: -0.2 percentage points
— Change from October 2022: -0.9 percentage points
The information industry includes many tech companies, which were relatively insulated from the COVID-19 recession but have fared worse amid the past year’s lower sales and economic turmoil. What started with Meta and Twitter late last year has evolved into a lengthy series of layoffs at tech giants and startups alike. Information also includes media companies, which have experienced rampant layoffs throughout 2023 at news outlets and entertainment corporations alike, including three rounds of layoffs at music streaming service Spotify.
#16. State and local government, excluding education
– October 2023 layoffs: 21,000
— Change from prior month: -5,000
— Change from October 2022: -12,000
– October 2023 layoff rate: 0.2% (Rank: #19)
— Change from prior month: -0.1 percentage points
— Change from October 2022: -0.2 percentage points
State and local government jobs have barely recovered from COVID-19 drops. Record federal rescue funds kept Americans spending amid the COVID recession, putting ample money back into some state tax coffers. But those funds have dried up, and many governments are looking at significant budget shortfalls again, which likely means cutting employees.
#15. Real estate and rental and leasing
– October 2023 layoffs: 25,000
— Change from prior month: -6,000
— Change from October 2022: +1,000
– October 2023 layoff rate: 1.0% (Rank: #9)
— Change from prior month: -0.3 percentage points
— Change from October 2022: No change
The real estate industry was among the first to feel the effects of rising interest rates as the Federal Reserve began its attempts to control inflation in 2022. Thousands of real estate agents and brokers have lost their jobs since rates began increasing and inventory has remained squeezed.
#14. Educational services
– October 2023 layoffs: 26,000
— Change from prior month: -2,000
— Change from October 2022: -13,000
– October 2023 layoff rate: 0.7% (Rank: #14)
— Change from prior month: No change
— Change from October 2022: -0.3 percentage points
The nation’s educational services industry comprises private school teachers and college professors, employees of education technology companies, and nontraditional educators like online tutors. Colleges have struggled with a decline in overall enrollment since the onset of the COVID-19 pandemic, and some in the industry fear some institutions may downsize.
#13. Finance and insurance
– October 2023 layoffs: 38,000
— Change from prior month: +14,000
— Change from October 2022: -1,000
– October 2023 layoff rate: 0.6% (Rank: #15)
— Change from prior month: +0.2 percentage points
— Change from October 2022: No change
Finance and insurance companies enjoyed an employment boom in recent years, spurred by the onset of the pandemic. Americans cooped up in their apartments and houses leapt at the chance to secure larger homes for themselves at historically low interest rates. In today’s higher interest rate environment, these firms may find themselves poorly equipped to keep all of their workers on payroll. Industry giants like Goldman Sachs and Morgan Stanley have resorted to sizable layoffs in recent months.
#12. State and local government education
– October 2023 layoffs: 42,000
— Change from prior month: +8,000
— Change from October 2022: +8,000
– October 2023 layoff rate: 0.4% (Rank: #17)
— Change from prior month: +0.1 percentage points
— Change from October 2022: +0.1 percentage points
Public school teachers are represented in the state and local government education sector, a field that has struggled to attract and retain teachers over the last decade as public school funding has dried up. Record inflation has made teaching wages close to unlivable in some places as conservative elected officials have slashed public education funding. Public schools may be forced to cut teachers if costs rise to unmanageable levels.
#11. Wholesale trade
– October 2023 layoffs: 46,000
— Change from prior month: -18,000
— Change from October 2022: +2,000
– October 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: -0.3 percentage points
— Change from October 2022: +0.1 percentage points
Wholesale trade companies are intermediaries that don’t necessarily advertise their business to consumers. They operate in the background, buying inventory from manufacturers and reselling it to retailers. An American working in wholesale may be employed by Costco or a medical wholesaler like McKesson.
#10. Arts, entertainment, and recreation
– October 2023 layoffs: 55,000
— Change from prior month: -23,000
— Change from October 2022: No change
– October 2023 layoff rate: 2.2% (Rank: #1)
— Change from prior month: -0.9 percentage points
— Change from October 2022: -0.2 percentage points
Among the hardest hit by COVID-19, the arts and entertainment sector has faced new challenges in 2023. TV and movie writers were on strike for nearly five months over pay and other issues, and actors walked out too. These stoppages halted many productions, meaning other workers in this industry weren’t needed. While new contracts have resolved both strikes, Hollywood remains tumultuous as the streaming economy challenges the entertainment sector.
#9. Nondurable goods manufacturing
– October 2023 layoffs: 57,000
— Change from prior month: -4,000
— Change from October 2022: +3,000
– October 2023 layoff rate: 1.2% (Rank: #6)
— Change from prior month: No change
— Change from October 2022: +0.1 percentage points
The phrase “nondurable goods” is a fancy way of saying any item you can purchase that will go bad if left on a shelf for too long, or will only provide the consumer with a single use before it’s gone. These items include food and cleaning products or even cigarettes. Americans working in nondurable goods manufacturing might work for a food processor like Frito-Lay or a makeup brand. Nondurable goods manufacturing was one of few industries without a worker shortage as of September, as the industry hasn’t recovered all the employment opportunities it lost amid COVID-19. This may make employers feel they are better positioned to lay off or fire people.
#8. Durable goods manufacturing
– October 2023 layoffs: 68,000
— Change from prior month: -2,000
— Change from October 2022: +20,000
– October 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: -0.1 percentage points
— Change from October 2022: +0.2 percentage points
Durable goods include any item purchased that gets reused over time and does not expire. These can be plastic storage bins, children’s toys, and even technology like smartphones. Manufacturing of durable goods saw a boom in the first two years of the pandemic as consumers spent their incomes on things they could safely enjoy from their homes. Some of those manufacturers have had to scale back head counts as consumer demand has dropped off in the goods-producing sector and moved into services—and as inflation has limited consumers’ spending power.
#7. Other services
– October 2023 layoffs: 81,000
— Change from prior month: +20,000
— Change from October 2022: +17,000
– October 2023 layoff rate: 1.4% (Rank: #5)
— Change from prior month: +0.4 percentage points
— Change from October 2022: +0.3 percentage points
The so-called “other services” category of American industry covers service-oriented work that doesn’t fit neatly into any other category. It includes jobs like equipment repair, religious work, and end-of-life care, according to the Bureau of Labor Statistics. Being an eclectic mix, it’s hard to pinpoint what trends beyond the overarching economy impact fluctuations in layoffs in this category.
#6. Transportation, warehousing, and utilities
– October 2023 layoffs: 110,000
— Change from prior month: +20,000
— Change from October 2022: +6,000
– October 2023 layoff rate: 1.5% (Rank: #4)
— Change from prior month: +0.3 percentage points
— Change from October 2022: +0.1 percentage points
The transportation, warehousing, and utilities industry encompasses the massive supply chain in the U.S., which experienced unending hiccups and shocks throughout the last several years. The pandemic pushed the supply chain to ramp up, and now it’s over capacity with lower demand levels more recently. Now, trucking, flight, and other companies built around moving freight are going bankrupt or shuttering operations, and their employees are finding themselves out of a job.
#5. Retail trade
– October 2023 layoffs: 139,000
— Change from prior month: +3,000
— Change from October 2022: +12,000
– October 2023 layoff rate: 0.9% (Rank: #10)
— Change from prior month: No change
— Change from October 2022: +0.1 percentage points
Retail trade is one of the largest employers in the country, including retail floor workers and those employed within the many corporate branches at retail giants like Target and Kroger. Inflation has tightened wallets, limiting individuals’ spending and leaving retail establishments to feel the initial impacts. This year, retail giants like Walmart and Nordstrom have announced cuts to their workforces—largely among corporate employees.
#4. Accommodation and food services
– October 2023 layoffs: 155,000
— Change from prior month: -7,000
— Change from October 2022: -15,000
– October 2023 layoff rate: 1.1% (Rank: #7)
— Change from prior month: No change
— Change from October 2022: -0.1 percentage points
The accommodation and food services industry comprises hotels, restaurants, and fast food chains that employ tens of millions of Americans. These leisure services have largely recovered from COVID-era struggles, though record inflation has tempered some of that recovery. Higher costs of essential expenses mean there is less left over for Americans to treat themselves by dining out or taking a trip.
#3. Construction
– October 2023 layoffs: 163,000
— Change from prior month: +6,000
— Change from October 2022: -4,000
– October 2023 layoff rate: 2.0% (Rank: #2)
— Change from prior month: No change
— Change from October 2022: -0.1 percentage points
Homebuying was rampant in 2021 with record low interest rates as the Fed tried to get people to spend amid COVID-19. The high-interest rates the Fed implemented to stunt inflation have slowed the greater real estate market and, in turn, construction. Residential and commercial construction bear the brunt of the slowdown, as fewer individuals are in a place to buy homes, and fewer companies can afford to revamp or expand offices and storefronts.
#2. Health care and social assistance
– October 2023 layoffs: 173,000
— Change from prior month: +27,000
— Change from October 2022: +70,000
– October 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: +0.1 percentage points
— Change from October 2022: +0.3 percentage points
The U.S. health care industry is at a crisis point without enough nurses or doctors to care for an aging population, and many of those health professionals burnt out providing care during the COVID-19 pandemic. Still, the sector cut job openings in October. Institutions such as hospitals are struggling with finances, moving them to cut services that don’t produce profits—and the employees that go with them.
#1. Professional and business services
– October 2023 layoffs: 410,000
— Change from prior month: +9,000
— Change from October 2022: +50,000
– October 2023 layoff rate: 1.8% (Rank: #3)
— Change from prior month: +0.1 percentage points
— Change from October 2022: +0.2 percentage points
The professional and business services industry comprises attorneys, marketing, accountants, and other professionals who support businesses in mostly white-collar positions. Many of these positions have been safe over the past three years as consumer demand remained hot and companies seemingly couldn’t find enough workers to fill jobs. But interest-rate hikes, bank failures, and challenges among other industries serviced by these professionals spell trouble. For example, tech companies’ current struggles trickle down to business services as firms cut costs.
