Layoffs haven’t been this low since the 1960s. It’s great if you have a job — but not if you don’t.
Layoff activity is at levels not seen since the 1960s, producing a labor market where people already employed face relatively low risk of losing their jobs while jobseekers encounter substantial difficulty finding openings. The current environment therefore benefits incumbents but creates challenges for those trying to enter or re-enter the workforce.
Why It Matters
This divergence shapes household income risk and career mobility: low layoffs protect existing workers' earnings and job security, while scarce hiring makes unemployment spells longer and limits opportunities for career changes or newcomers.
Key Facts
- Layoff levels: Reported to be the lowest since the 1960s.
- Impact on employed people: Those with jobs likely face reduced risk of being laid off.
- Impact on jobseekers: People looking for work are finding it hard to secure employment.
Layoff volumes have fallen to a point not observed since the 1960s, according to the reporting behind this summary. That decline means that workers who are currently employed generally have stronger job security than in periods when layoffs are more frequent. For these incumbents, the labor market's current structure reduces the immediate threat of displacement.
At the same time, the same conditions that have cut layoffs appear to be producing a tougher environment for anyone trying to find a job. Hiring opportunities are comparatively scarce, making it more difficult for unemployed workers, recent graduates, or people seeking to switch careers to land positions. The mismatch creates a clear split in experiences between those inside and those outside employment.
The divergence has broader implications for labor mobility and income dynamics. With fewer jobs opening up or fewer employers hiring aggressively, workers may face longer job searches and reduced bargaining power when entering the market. Meanwhile, employed workers benefit from greater stability, which can affect consumption, saving, and career decisions.
Overall, the current labor market favors retention over recruitment: it protects those already employed while raising barriers for jobseekers trying to get in. That pattern is central to understanding household-level economic risks and opportunities in the near term.
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