Layoffs Are at Their Lowest Since the 1960s, but Hiring Is Still Slow

If you've been worried about losing your job, the latest data offers some reassurance. Layoffs in the U.S. are running at historically low levels.

Weekly unemployment claims, a common gauge of layoffs, fell by 2,000 to 197,000 in data released Oct. 8, 2026, according to Axios. Claims have stayed below 200,000 for roughly a month, and the four-week average fell to 198,000.

"New jobless claims have been under 200,000 for a month now, an incredibly low level of layoffs for a sustained period of time that hasn't been seen since the 1960s," said Heather Long, chief economist at Navy Federal Credit Union.

Reuters reported on Oct. 15 that claims ticked up only slightly the following week.

Fewer job cuts announced

Outplacement firm Challenger, Gray & Christmas counted 573,195 announced job cuts through September 2026, down nearly 40% from the same period in 2025, CBS News reported. September alone saw 43,281 announced cuts, down 20% from a year earlier and the lowest monthly total in four years. Employer hiring plans were up 3% for the year.

The catch: hiring is slow

Companies are holding on to workers, but they aren't adding many. Job growth averaged about 71,000 a month over the three months before September, and economists surveyed by CBS expected about 90,000 new jobs in the September report.

Oxford Economics described it this way: businesses "aren't hiring at a rapid pace" but remain "reticent to let their current crop of workers go."

What jobless claims actually measure

Weekly unemployment claims count the number of people filing for unemployment benefits for the first time after losing a job. Economists watch the figure closely because it's published every week, far more often than the monthly jobs report, which makes it one of the fastest available signals of how the labor market is shifting. A four-week moving average, which smooths out weekly noise like holidays or seasonal adjustments, is often considered a more reliable gauge of the underlying trend than any single week's number.

It's worth remembering that low layoffs and strong hiring aren't the same thing. The U.S. labor market can be described as "frozen" when few people are losing jobs but few new jobs are being created either, which leaves workers who do want to switch jobs, relocate, or re-enter the workforce after a career break facing a tougher search than the low layoff numbers alone would suggest.

What it means for your career

If you're employed:

• This can be a good time to ask for a raise. PNC economists noted early signs of rising wage growth.
• Build skills now so you're ready when hiring picks up.
• Keep your emergency fund strong anyway. Conditions can change quickly.

If you're job hunting:

1. Lean on your network. When openings are scarce, referrals matter more.
2. Target growing industries and companies that are still hiring.
3. Plan for a longer search and budget accordingly.
4. Consider contract or freelance work to bridge gaps and build experience.

Why the mood doesn't match the data

The Washington Post noted the gap between strong layoff numbers and gloomy public feelings about the economy ahead of the Nov. 3 midterm elections. High prices, including inflation at 3.7% in September, are a big reason many people feel stretched even when their jobs are secure.

The bottom line

Layoffs are at levels not seen in decades, which is good news for anyone with a job. But slow hiring means job seekers face a tougher market. Use this stable stretch to strengthen your savings, sharpen your skills and, if it makes sense, make the case for a raise.

Sources: https://www.axios.com/2026/10/08/layoffs-unemployment-labor, https://www.cbsnews.com/news/us-layoffs-drop-four-year-low/, https://www.washingtonpost.com/politics/2026/10/08/layoffs-extremely-low-levels-despite-americans-gloom-about-economy/