Industries that laid off the most workers in February
Industries that laid off the most workers in February
The new year kicked off with a slew of layoff announcements from major employers across the country.
People placed a heightened focus on layoff news, rooted in fear of an uncertain economy—although despite the headlines, layoffs remain well below pre-pandemic levels. Bureau of Labor Statistics estimates show that there were about 19.6 million layoffs throughout 2023, compared to 21.8 million in 2019. In February the layoff rate was 1.1%, a figure that has remained relatively steady throughout the past year.
There were about 1.7 million layoffs overall in February, up roughly 8% from the previous month and nearly 10% from the previous year. This follows a rampant year for layoffs, with about 2 million more layoffs in 2023 than in 2022.
To see which workers have been most affected, Stacker used Bureau of Labor Statistics data to rank 19 major industries by the number of layoffs in February 2024. The analysis uses seasonally adjusted data. Numbers for the month are preliminary and may be updated.
#18. Federal government (tie)
- February 2024 layoffs: 6,000
--- Change from prior month: No change
--- Change from February 2023: No change
- February 2024 layoff rate: 0.2% (Rank: #19)
--- Change from prior month: No change
--- Change from February 2023: No change
Congress averted a government shutdown and furloughs among federal workers by funding several federal departments through the end of the fiscal year, but has yet to create a comprehensive 2024 federal budget. The risk of a shutdown continues to threaten millions of other jobs across government functions. Spending cuts could lead to permanent layoffs, depending on how the permanent federal budget shakes out.
#18. Mining and logging (tie)
- February 2024 layoffs: 6,000
--- Change from prior month: -2,000
--- Change from February 2023: No change
- February 2024 layoff rate: 1.0% (Rank: #7)
--- Change from prior month: -0.2 percentage points
--- Change from February 2023: No change
The mining and logging industry includes oil and gas workers as well as workers who cut timber and produce wood for residential construction. Worldwide, as economies shift toward clean energy, analysts expect more than 400,000 mining workers to be laid off by 2035—largely in China and India, but also in the U.S. and other countries. U.S. logging jobs are also projected to decline over the next decade as the industry adopts more advanced machinery and demand decreases for logging, particularly as tech advancements replace the need for virgin paper products.
#17. Private educational services
- February 2024 layoffs: 18,000
--- Change from prior month: -3,000
--- Change from February 2023: -15,000
- February 2024 layoff rate: 0.5% (Rank: #15)
--- Change from prior month: -0.1 percentage points
--- Change from February 2023: -0.4 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 had been struggling with a decline in overall enrollment for a decade by the onset of the COVID-19 pandemic, which further exacerbated the situation.
Some in the industry fear institutions may downsize.
#16. Real estate and rental and leasing
- February 2024 layoffs: 22,000
--- Change from prior month: -8,000
--- Change from February 2023: +4,000
- February 2024 layoff rate: 0.9% (Rank: #9)
--- Change from prior month: -0.3 percentage points
--- Change from February 2023: +0.2 percentage points
The real estate industry was among the first to feel the effects of rising interest rates. Thousands of real estate agents and brokers lost their jobs as rates began increasing and inventory remained squeezed. Though rates are coming back down, they still remain high—as do prices, thus limiting real estate activity.
#15. Information
- February 2024 layoffs: 27,000
--- Change from prior month: +10,000
--- Change from February 2023: -15,000
- February 2024 layoff rate: 0.9% (Rank: #9)
--- Change from prior month: +0.3 percentage points
--- Change from February 2023: -0.5 percentage points
The information industry includes many tech companies, which slashed jobs throughout 2023—a trend that is continuing in 2024.
Executives cited recession concerns, efficiency, and artificial intelligence as drivers for these layoffs. Google has more layoffs coming this year, as do Microsoft, Discord, Twitch, and others. Many of these companies sit at the intersection of tech and media, which is another large segment of the information industry. Media companies have already announced vast layoffs in 2024, continuing last year's trend.
#14. Finance and insurance
- February 2024 layoffs: 32,000
--- Change from prior month: -2,000
--- Change from February 2023: +11,000
- February 2024 layoff rate: 0.5% (Rank: #15)
--- Change from prior month: No change
--- Change from February 2023: +0.2 percentage points
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 leaped 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 their workers on payroll. Industry giants resorted to sizable layoffs in 2023, with Citigroup following suit this year.
#13. State and local government education
- February 2024 layoffs: 37,000
--- Change from prior month: +4,000
--- Change from February 2023: -1,000
- February 2024 layoff rate: 0.3% (Rank: #18)
--- Change from prior month: No change
--- Change from February 2023: -0.1 percentage points
Public school teachers are in the state and local government education sector. This field 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. State and local government, excluding education (tie)
- February 2024 layoffs: 41,000
--- Change from prior month: +10,000
--- Change from February 2023: +1,000
- February 2024 layoff rate: 0.4% (Rank: #17)
--- Change from prior month: +0.1 percentage points
--- Change from February 2023: No change
State and local government jobs have barely recovered from COVID-19 drops.
Record federal rescue funds kept Americans spending amid the COVID-19 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.
#11. Other services (tie)
- February 2024 layoffs: 41,000
--- Change from prior month: -5,000
--- Change from February 2023: -22,000
- February 2024 layoff rate: 0.7% (Rank: #12)
--- Change from prior month: -0.1 percentage points
--- Change from February 2023: -0.4 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. The category is an eclectic mix, so it's hard to pin down what trends beyond the overarching economy impact fluctuations in layoffs in this category.
#10. Wholesale trade
- February 2024 layoffs: 53,000
--- Change from prior month: +9,000
--- Change from February 2023: No change
- February 2024 layoff rate: 0.9% (Rank: #9)
--- Change from prior month: +0.2 percentage points
--- Change from February 2023: No change
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. Wholesale trade is another industry not currently facing a worker shortage, so its employers may also have more confidence to make layoffs.
#9. Durable goods manufacturing
- February 2024 layoffs: 57,000
--- Change from prior month: -7,000
--- Change from February 2023: -1,000
- February 2024 layoff rate: 0.7% (Rank: #12)
--- Change from prior month: -0.1 percentage points
--- Change from February 2023: No change
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.
#8. Nondurable goods manufacturing
- February 2024 layoffs: 62,000
--- Change from prior month: +8,000
--- Change from February 2023: +2,000
- February 2024 layoff rate: 1.3% (Rank: #4)
--- Change from prior month: +0.2 percentage points
--- Change from February 2023: +0.1 percentage points
The phrase "nondurable goods" refers to any item consumers 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, as well as cigarettes. Americans working in nondurable goods manufacturing might work for a food processor like Frito-Lay. 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 better positioned to lay off or fire people.
#7. Transportation, warehousing, and utilities
- February 2024 layoffs: 87,000
--- Change from prior month: -21,000
--- Change from February 2023: -14,000
- February 2024 layoff rate: 1.2% (Rank: #5)
--- Change from prior month: -0.3 percentage points
--- Change from February 2023: -0.2 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 more recently, it's over capacity with lower demand levels. 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. UPS is the latest major player to announce a massive sweep of layoffs in the new year.
#6. Arts, entertainment, and recreation
- February 2024 layoffs: 140,000
--- Change from prior month: +57,000
--- Change from February 2023: +67,000
- February 2024 layoff rate: 5.3% (Rank: #1)
--- Change from prior month: +2.1 percentage points
--- Change from February 2023: +2.3 percentage points
The arts and entertainment sector faced new challenges last year. TV and movie writers were on strike for nearly five months over pay and other issues, and actors walked out, too. While new contracts have resolved both strikes, Hollywood remains tumultuous as the streaming economy challenges the entertainment sector.
Pixar, Amazon Prime Video, and Universal Music Group have been among entertainment companies to cut jobs already in 2024.
#5. Health care and social assistance
- February 2024 layoffs: 157,000
--- Change from prior month: +24,000
--- Change from February 2023: +39,000
- February 2024 layoff rate: 0.7% (Rank: #12)
--- Change from prior month: +0.1 percentage points
--- Change from February 2023: +0.1 percentage points
The American 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 burned out providing care during the COVID-19 pandemic. Still, 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.
#4. Retail trade
- February 2024 layoffs: 161,000
--- Change from prior month: +25,000
--- Change from February 2023: +5,000
- February 2024 layoff rate: 1.0% (Rank: #7)
--- Change from prior month: +0.1 percentage points
--- Change from February 2023: No change
Retail trade is one of the largest employers in the country, including retail floor workers as well as 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.
In 2023, retail giants including Walmart and Nordstrom announced cuts to their workforces—largely among corporate employees. Those layoffs are continuing in 2024 at companies like eBay, REI, Macy's, and Wayfair.
#3. Accommodation and food services
- February 2024 layoffs: 166,000
--- Change from prior month: +67,000
--- Change from February 2023: +38,000
- February 2024 layoff rate: 1.2% (Rank: #5)
--- Change from prior month: +0.5 percentage points
--- Change from February 2023: +0.3 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.
#2. Construction
- February 2024 layoffs: 214,000
--- Change from prior month: +27,000
--- Change from February 2023: +43,000
- February 2024 layoff rate: 2.6% (Rank: #2)
--- Change from prior month: +0.3 percentage points
--- Change from February 2023: +0.5 percentage points
The high interest rates the Fed implemented to stunt inflation slowed the greater real estate market and, by extension, construction. Residential and commercial construction bear the brunt of the slowdown as fewer individuals are in a place to buy homes, and not as many companies can afford to revamp or expand offices and storefronts.
This is in stark contrast to 2021 when record-low interest rates created a surge in demand for real estate.
#1. Professional and business services
- February 2024 layoffs: 396,000
--- Change from prior month: -65,000
--- Change from February 2023: +11,000
- February 2024 layoff rate: 1.7% (Rank: #3)
--- Change from prior month: -0.3 percentage points
--- Change from February 2023: No change
The professional and business services industry includes 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 demand from consumers 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.
Tech companies' current struggles, for example, trickle down to business services as firms cut costs.
