JOLTS Layoffs Rate

## What this measures

The share of employed workers who were laid off or discharged involuntarily in a given month. This series captures the rate at which employers end jobs without the worker's consent, as distinct from voluntary quits.

## Why it matters

A rising layoffs rate signals weakening labor demand and often precedes broader economic slowdowns, while a stable or falling rate suggests employers are holding onto staff. Organizations use it to anticipate changes in the availability of talent, the bargaining position of workers, and the broader demand environment in which they operate.

## How to read it

Higher values mean more workers are being laid off relative to total employment, indicating softening labor markets. Lower values mean fewer involuntary separations, consistent with tighter labor conditions. Compare the current level to its range over recent years to judge whether layoffs are elevated or subdued.

## What it does not say

This rate does not distinguish between permanent layoffs and temporary furloughs, nor does it capture job losses due to business closures versus workforce reductions at continuing establishments. It also does not reflect the reasons for layoffs or the industries most affected.

## Source

Palanor pulls FRED series JTSLDR from the FRED API nightly. The underlying data come from the Job Openings and Labor Turnover Survey, published monthly by the U.S. Bureau of Labor Statistics and seasonally adjusted.