Industries that laid off the most workers in May
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Industries that laid off the most workers in May
A business people leaving their job with a cardboard box of their belongings after being laid off.
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 persistent inflation and uncertainty about a looming downturn stemming from central banks’ own prescription for combating inflation: higher interest rates.
Companies spent 2022 pulling back on spending and new hires, moving forward cautiously. Over 1.5 million people were laid off or fired in May 2023 nationwide; that’s down about 2% from the previous month, but up about 5% 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 May 2023. The analysis uses seasonally adjusted data. Numbers for the month are preliminary and may be updated.
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#18. Federal government (tie)
– May 2023 layoffs: 8,000
— Change from prior month: No change
— Change from May 2022: -3,000
– May 2023 layoff rate: 0.3% (Rank: #19)
— Change from prior month: No change
— Change from May 2022: -0.1 percentage points
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.
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#18. Mining and logging (tie)
– May 2023 layoffs: 8,000
— Change from prior month: No change
— Change from May 2022: +3,000
– May 2023 layoff rate: 1.2% (Rank: #6)
— Change from prior month: No change
— Change from May 2022: +0.3 percentage points
The mining and logging industry includes oil and gas workers as well as 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. as well as rising costs, which business leaders have cited as the reason for workforce cuts.
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#17. Real estate and rental and leasing
– May 2023 layoffs: 13,000
— Change from prior month: -2,000
— Change from May 2022: -1,000
– May 2023 layoff rate: 0.5% (Rank: #15)
— Change from prior month: -0.1 percentage points
— Change from May 2022: -0.1 percentage points
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.
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#16. Educational services
– May 2023 layoffs: 20,000
— Change from prior month: -1,000
— Change from May 2022: -7,000
– May 2023 layoff rate: 0.5% (Rank: #15)
— Change from prior month: No change
— Change from May 2022: -0.2 percentage points
The nation’s educational services industry comprises elementary and secondary school teachers as well college professors 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.
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#15. Information
– May 2023 layoffs: 35,000
— Change from prior month: +21,000
— Change from May 2022: +5,000
– May 2023 layoff rate: 1.1% (Rank: #8)
— Change from prior month: +0.6 percentage points
— Change from May 2022: +0.1 percentage points
The information industry includes those working in media, which took a haircut in 2022 as corporate media outlets cut their head counts, citing uncertainty about the future of the economy. Interest in media, and with it ad dollars, spiked during the Trump administration as Americans tuned into cable news and visited news websites to keep up with two impeachments and near-weekly scandals.
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#13. Finance and insurance (tie)
– May 2023 layoffs: 38,000
— Change from prior month: +10,000
— Change from May 2022: -8,000
– May 2023 layoff rate: 0.6% (Rank: #12)
— Change from prior month: +0.2 percentage points
— Change from May 2022: -0.1 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 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. On the other hand, Americans have continued to borrow at surprising rates as inflation eats into their bottom lines.
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#13. Other services (tie)
– May 2023 layoffs: 38,000
— Change from prior month: -15,000
— Change from May 2022: -33,000
– May 2023 layoff rate: 0.6% (Rank: #12)
— Change from prior month: -0.3 percentage points
— Change from May 2022: -0.6 percentage points
The so-called “other services” category of American industry includes service-oriented jobs that don’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.
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#12. State and local government education
– May 2023 layoffs: 39,000
— Change from prior month: +1,000
— Change from May 2022: +6,000
– May 2023 layoff rate: 0.4% (Rank: #18)
— Change from prior month: No change
— Change from May 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 in the event that costs rise to unmanageable levels.
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#11. State and local government, excluding education
– May 2023 layoffs: 47,000
— Change from prior month: -5,000
— Change from May 2022: +12,000
– May 2023 layoff rate: 0.5% (Rank: #15)
— Change from prior month: -0.1 percentage points
— Change from May 2022: +0.1 percentage points
State and local governments feared that the U.S. could face a shortfall of tax revenue when the COVID-19 pandemic began. Record federal rescue funds kept Americans spending, however, and put ample money back into some state tax coffers. Other states are just now feeling tax revenues bounce back, leading to proposals to pass the savings on to voters in the form of tax cuts in some places.
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#10. Arts, entertainment, and recreation
– May 2023 layoffs: 51,000
— Change from prior month: -5,000
— Change from May 2022: -19,000
– May 2023 layoff rate: 2.1% (Rank: #1)
— Change from prior month: -0.2 percentage points
— Change from May 2022: -1.0 percentage points
The arts and entertainment sector was among the hardest hit in the steep COVID-19 recession of 2020. Public health recommendations meant consumers were extremely wary of businesses like theme parks and airlines, which scaled back or closed operations for a time. The drop-off in demand was particularly difficult for movie theaters as Americans leaned into digital streaming services at home.
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#9. Wholesale trade
– May 2023 layoffs: 56,000
— Change from prior month: No change
— Change from May 2022: -8,000
– May 2023 layoff rate: 0.9% (Rank: #11)
— Change from prior month: No change
— Change from May 2022: -0.2 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.
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#8. Nondurable goods manufacturing
– May 2023 layoffs: 61,000
— Change from prior month: +3,000
— Change from May 2022: +11,000
– May 2023 layoff rate: 1.2% (Rank: #6)
— Change from prior month: No change
— Change from May 2022: +0.2 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.
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#7. Durable goods manufacturing
– May 2023 layoffs: 79,000
— Change from prior month: +17,000
— Change from May 2022: +30,000
– May 2023 layoff rate: 1.0% (Rank: #10)
— Change from prior month: +0.2 percentage points
— Change from May 2022: +0.4 percentage points
Durable goods include any item you purchase 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 the only 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.
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#6. Transportation, warehousing, and utilities
– May 2023 layoffs: 95,000
— Change from prior month: -10,000
— Change from May 2022: +23,000
– May 2023 layoff rate: 1.3% (Rank: #4)
— Change from prior month: -0.1 percentage points
— Change from May 2022: +0.3 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. Freight shipping companies have laid off staff over the last year, citing difficult economic conditions that have tamped down demand.
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#5. Construction
– May 2023 layoffs: 123,000
— Change from prior month: -71,000
— Change from May 2022: +23,000
– May 2023 layoff rate: 1.5% (Rank: #3)
— Change from prior month: -0.9 percentage points
— Change from May 2022: +0.2 percentage points
The construction industry suffered a crippling pause at the start of the pandemic that resulted in a shock to home inventory. But as the pandemic progressed, so too did new home, multifamily, and commercial construction. With vaccines now widely available, pressure will come from higher interest rates driving down demand for new homes.
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#4. Health care and social assistance
– May 2023 layoffs: 128,000
— Change from prior month: -3,000
— Change from May 2022: -14,000
– May 2023 layoff rate: 0.6% (Rank: #12)
— Change from prior month: No change
— Change from May 2022: -0.1 percentage points
The health care and social assistance sector is experiencing rising demand for its services as Americans continue to get older and live longer on average. The pandemic exhausted health care workers and accelerated the shift from in-hospital care to home care for elderly patients. While medical care costs have risen with inflation, the health care industry is also at a crisis point trying to attract enough new nurses to care for Americans.
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#3. Accommodation and food services
– May 2023 layoffs: 155,000
— Change from prior month: +24,000
— Change from May 2022: +22,000
– May 2023 layoff rate: 1.1% (Rank: #8)
— Change from prior month: +0.2 percentage points
— Change from May 2022: +0.1 percentage points
The accommodation and food services industry comprises hotels, motels, full-service restaurants, and fast food chains that employ tens of millions of Americans. These leisure services struggled in the first two years of the pandemic as Americans pulled back on activities that they felt could expose them to COVID-19.
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#2. Retail trade
– May 2023 layoffs: 253,000
— Change from prior month: +87,000
— Change from May 2022: +119,000
– May 2023 layoff rate: 1.6% (Rank: #2)
— Change from prior month: +0.5 percentage points
— Change from May 2022: +0.7 percentage points
Retail trade is one of the largest employers in the country and includes employees at companies like Target and Kroger brand grocery stores. Workers in these industries have faced some of the most difficult working conditions as they served customers through the dangers of the COVID-19 pandemic. This year, companies like Walmart and Nordstrom have announced cuts to their workforces.
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#1. Professional and business services
– May 2023 layoffs: 308,000
— Change from prior month: -86,000
— Change from May 2022: -89,000
– May 2023 layoff rate: 1.3% (Rank: #4)
— Change from prior month: -0.4 percentage points
— Change from May 2022: -0.5 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 demand from consumers remained hot and companies seemingly couldn’t find enough workers to fill jobs. But interest-rate hikes and bank failures may spell trouble.
