August Layoff Plans Rise, but Labor Market Remains Stable — Evening Brief – 09.03.26
U.S. employers announced more layoffs in August, but job cuts remained below last year’s pace as unemployment claims stayed historically low. The figures reinforce a labor market pattern of limited firing alongside cautious, slow-moving hiring.
Employers disclosed 52,881 planned job cuts in August, up 58% from July but down 38% from August 2025, according to outplacement firm Challenger, Gray & Christmas. It was the lowest August total since 2022.
Through eight months, announced cuts totaled 529,914, a 41% decline from 892,362 during the comparable 2025 period. Excluding government employers, reductions fell 15%. Challenger’s figures track publicly announced plans, which may not occur immediately and differ from government measures of completed layoffs.
Technology companies led year-to-date reductions with 155,126, up 52%. Transportation cuts surged 271% to 42,279, while health care and products declined 2% to 35,637.
Consumer products recorded the most August cuts at 10,057, reflecting announcements from Procter & Gamble and Estée Lauder. Food companies followed with 7,982 and technology firms announced 6,103.
Restructuring accounted for 16,173 cuts, or 31% of the monthly total. August was the first month since February in which artificial intelligence was not the leading reason. AI still accounted for 116,175 cuts through August, about 22% of the annual total.
Hiring announcements offered a mixed signal. Employers outlined plans to add 12,325 workers in August, down 23% from July but up 725% from a year earlier. Year-to-date plans rose 37% to 119,825, the strongest total since 2023.
Andy Challenger, the firm’s chief revenue officer, said hiring plans have improved, but positions do not appear to be filled quickly.
Separately, initial unemployment claims rose 2,000 to 206,000 for the week ended Aug. 29. The four-week average increased to 207,250, while continuing claims rose to 1.779 million, remaining consistent with a low-layoff labor market while offering fewer openings for job seekers.