What Is the Layoffs & Discharges Rate?
The Layoffs & Discharges Rate measures the percentage of workers who are involuntarily separated from their jobs each month. This includes layoffs, firings, and other employer‑initiated separations.
Because layoffs rise when businesses face financial pressure or weakening demand, this indicator is a key measure of labor market stress and economic turning points.
Why the Layoffs & Discharges Rate Matters
- Early recession signal Layoffs typically rise before unemployment increases, making this a leading indicator.
- Employer sentiment gauge Rising layoffs suggest businesses are cutting costs or anticipating slower conditions.
- Complements Job Openings, Hires, and Quits Together, these metrics show the full flow of labor market dynamics.
- Insight into job security Low layoff rates indicate strong labor demand and employer retention efforts.
Key Insights
- The layoffs rate is usually low during expansions and spikes during downturns.
- A sudden increase often signals weakening business conditions.
- Persistent low layoffs, even during slowdowns, can indicate labor shortages or retention strategies.
Source
U.S. Bureau of Labor Statistics (BLS) / FRED