U.S. Layoffs Hit Two-Year Low in July as Hiring Plans Rebound — Evening Brief – 08.06.26

U.S. employers announced the fewest monthly job cuts in two years during July, while planned hiring accelerated and unemployment claims remained subdued, offering evidence that the labor market continues to hold up despite technology-driven restructuring.

Employers disclosed 33,429 layoffs in July, down 27% from June and 46% from a year earlier, according to a report released Thursday by Challenger, Gray & Christmas.

Through the first seven months of 2026, employers announced 477,033 cuts, a 41% decline from the same period last year.

“The pace of layoffs fell dramatically this summer,” said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas. “Layoff plans continue to be announced primarily in tech, and artificial intelligence is still the story, as investments in the technology reshape organizations.”

Technology companies led July’s reductions with 9,867 announced cuts. The sector has disclosed 149,023 layoffs this year, up 67% from the comparable 2025 period.

Transportation companies announced 41,748 cuts through July, more than four times the 10,353 reported a year earlier. Financial firms disclosed 3,157 July layoffs, bringing their year-to-date total to 18,628, down 31%.

Hiring plans strengthened. Employers announced 16,097 intended hires, up 47% from June and more than five times the 3,200 reported in July 2025. It was the strongest July since 2022. Year-to-date hiring plans rose 25% to 107,500, the highest comparable total since 2023.

Separately, initial unemployment claims increased by 1,000 to 199,000 for the week ended Aug. 1, below the 201,000 consensus estimate, the Labor Department said.

The four-week moving average declined by 4,500 to 198,750. Continuing claims increased to 1.801 million for the week ended July 25 from a revised 1.777 million, while the insured unemployment rate held at 1.2%.