U.S. Layoffs Fall to Four-Year Low in First Eight Months of 2026

According to Jin10, U.S. companies announced 529,914 layoffs in the first eight months of 2026, the lowest level for the same period since 2022, while planned hiring reached the highest level for the same period since 2023. Andy Challenger, chief revenue officer at Challenger, said he hoped hiring activity would also increase as layoffs declined, but that the jobs companies planned to add did not appear to be filling quickly. Many economists still believe the U.S. labor market remains in the low-hiring, low-layoff environment that has prevailed over the past few years. Weekly jobless claims data show no clear signs of mass layoffs, and Friday's government monthly employment report is expected to show the unemployment rate unchanged at 4.1% in August. The Challenger report also said AI was no longer the main reason employers announced layoffs for the first time since February, with restructuring becoming the top reason in August, although AI remained the leading cause of layoffs so far this year.