Which U.S. States Are Facing The Most Layoffs?

U.S. Layoff Statistics Per State

Layoffs significantly impact individuals and can disrupt their livelihoods. They create uncertainty in the workplace, eroding employees’ confidence in their job performance and career prospects. This results in lower job security and increased competition for available positions. For Human Resource (HR) professionals and workforce planners, it is crucial to understand where these layoffs are occurring in order to respond effectively and promptly.

A recent study conducted by the online HR platform Techr, using state-level layoff data from the U.S. Bureau of Labor Statistics for April 2025, highlights the job markets with the highest layoff rates. By calculating layoffs per 100,000 workers, researchers identified the states experiencing the most job market disruption. The findings reveal significant regional differences, prompting a closer examination of workforce volatility and its implications. This article presents a comprehensive overview of the findings and key takeaways for employers and talent development professionals.

States With The Highest Layoff Rates

New Jersey topped the list with 1,843 layoffs per 100,000 workers. That’s 62% higher than the national average. The state’s workforce totaled nearly 4.4 million, of which 81,000 workers were laid off. According to the New Jersey Department of Labor and Workforce Development, education and health services, finance, and manufacturing have created more jobs. However, hospitality and leisure, trade and transportation, and construction have recorded job losses.

Next up was Vermont, with 1,594 layoffs per 100,000 workers. Although the total number of layoffs (5,000) is smaller, it is significant for a state with just over 310,000 workers. Virginia was close behind with 1,521 layoffs. That translated to 65,000 job losses across a workforce of 4.27 million..

These figures reflect considerable labor force disruptions regardless of the state’s size. “The study reveals that states like New Jersey, Vermont, and Virginia are seeing the sharpest rates of layoffs relative to their workforce size,” a Techr spokesperson said. “Such high layoff rates may be linked to broader economic shifts, from slow business activity to restructuring within key industries.”

Other Notable Findings

Florida ranked fourth, with 1,490 layoffs per 100,000 workers. The state reported a total of 150,000 layoffs out of its workforce of over 10 million. Since states that rely heavily on tourism tend to experience more significant fluctuations in employment within the hospitality, logistics, and retail sectors, this level of volatility is not unexpected.

New Hampshire experienced 1,410 layoffs and a total of 10,000 layoffs from its workforce of 709,400. Connecticut, West Virginia, Arkansas, Rhode Island, and Wyoming were also among the top ten states with layoffs. Although some of these states have smaller economies and workforces, these rates show a high level of short-term instability.

On the other hand, Minnesota recorded the lowest layoff rate in the nation, at 754 per 100,000 workers. That suggests relative stability, which may be linked to the state’s workforce development initiatives.

Implications For HR Professionals

While this data is essential for economists and policymakers, it also directly affects professionals managing talent, training, and organizational change. If you are an HR or workforce planning professional, now is the time to take action with focus and empathy.

These trends highlight the importance of enhancing talent retention strategies, providing mental health support, and improving employee communication during organizational transitions. State and local organizations must implement targeted initiatives, including reskilling programs and job transition services.

“These changes represent the impact on lives and the growing insecurity for thousands of households,” the spokesperson stated. “Tracking layoffs in relation to state workforce sizes helps us understand where workers are most vulnerable and where support strategies may be urgently needed.”

Prioritizing Retention

Layoffs impact not only those who are let go but also the remaining employees. When news of layoffs spreads, it can create anxiety and distraction among those who stay, leading to a loss of trust in the company’s leadership. HR teams must enhance communication, establish clear performance goals, and demonstrate a long-term commitment to career development. Building a strong organizational culture fosters resilience and improves employee retention.

Reskilling And Cross-Training

Rapid layoffs can create skill gaps and strain resources within the remaining team. To navigate this, organizations can benefit from upskilling, reskilling, and cross-training their employees. These L&D programs are crucial for mitigating disruption and preparing teams for future changes. By helping employees transition into new roles or take on different responsibilities, organizations can reduce stress, enhance adaptability, and retain valuable knowledge.

Using Data-Driven Insights

To effectively prepare for potential disruptions, HR and talent development leaders should evaluate industry trends, succession plans, and employee engagement metrics. By analyzing this data, they can anticipate changes and develop proactive strategies rather than merely reacting to them.

Final Thoughts

The results of this study show how fragile the current job market in the United States is. The data confirms what many HR professionals are likely already experiencing: a shifting and uncertain job landscape that requires flexibility, foresight, and compassion. Layoffs remain a significant challenge for both employers and employees. However, staying informed, building a resilient workforce, and creating support systems can make a significant difference.

Sources