U.S. Job Cuts Drop 40% in 2026 as Labor Market Shows Signs of Stability

U.S. layoffs fall to four-year low, hiring up 3% in 2026 as labor data shows market stability.

October 1, 2026 One Min Read

POLICY WIRE — Washington, D.C. — U.S. job losses have reached their lowest point in four years, with employers announcing 573,195 cuts through September—a nearly 40% decrease compared to the same period in 2025, according to new labor data.

The decline comes as hiring plans for the year have increased by 3%, with companies adding an average of 71,000 jobs per month over the last three months. The numbers suggest a stable but not explosive labor market, even as the Federal Reserve weighs its next steps on interest rates.

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Initial jobless claims for the week ending September 26 dropped to 197,000, signaling continued resilience in the workforce. Meanwhile, the JOLTS report showed that while hiring has risen slightly, the rate of worker separations has remained steady, indicating that businesses are reluctant to lay off current employees despite slower hiring growth.

Reporting by Policy-Wire (PW)

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