Probability of Being Laid Off (Annual)
1 in 83 (1.2%)
Annual probability in US
The annual layoff rate in the US is approximately 1.2% of total nonfarm employment, though it varies significantly by industry and economic conditions.
According to the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS), the annual layoffs and discharges rate was approximately 1.2% of total nonfarm employment in 2023, representing about 1.5 million layoffs and discharges per month. This rate fluctuates significantly with economic conditions, spiking during recessions.
Industries with higher layoff rates include construction, manufacturing, retail, hospitality, and technology (which saw significant layoffs in 2022-2023). Government jobs and healthcare tend to have lower layoff rates. Company size, tenure, and role also affect risk. Workers with less tenure, in non-essential roles, or at companies with declining revenues face higher risk.
Preparation strategies include maintaining an emergency fund covering 3-6 months of expenses, continuously developing marketable skills, maintaining a professional network, keeping your resume updated, diversifying income sources when possible, and understanding your severance and unemployment insurance rights. During economic uncertainty, focusing on projects that demonstrate direct business value can help reduce individual layoff risk.
Use This in a Decision
Plug this probability into our expected value calculator to make a data-driven decision.
Start a Decision