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Industries that laid off the most workers in March

World economies were left in disarray after the COVID-19 pandemic shocked supply chains and deeply affected the global workforce—and the U.S. was no exception.

As financial rescue efforts fade into the background, the U.S. economy faces dual crises of stubbornly persistent inflation and uncertainty about a looming downturn stemming from central banks’ own prescription for combating inflation: higher interest rates.

Companies spent 2022 pulling back on spending and new hires, moving forward cautiously. About 1.8 million people were laid off or fired in March 2023 nationwide; that’s up about 16% from the past month and about 30% since the same time last year.

Stacker used Bureau of Labor Statistics data to rank 19 major industries by the number of layoffs they had in March 2023. The analysis uses seasonally adjusted data. Numbers for the month are preliminary and may be updated.

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#19. Federal government

– March 2023 layoffs: 6,000
— Change from prior month: No change
— Change from March 2022: No change
– March 2023 layoff rate: 0.2% (Rank: #19)
— Change from prior month: No change
— Change from March 2022: No change

The federal government represents around 6% of all jobs in the country, including the military, the departments of Labor, Education, and Justice, and other federal agencies—as well as the Postal Service. The size of the federal government’s payroll has “significantly” decreased over the last 50 years, according to the nonpartisan Brookings Institution.

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#18. Mining and logging

– March 2023 layoffs: 9,000
— Change from prior month: +2,000
— Change from March 2022: +5,000
– March 2023 layoff rate: 1.4% (Rank: #4)
— Change from prior month: +0.3 percentage points
— Change from March 2022: +0.8 percentage points

The mining and logging industry includes oil and gas workers and those who cut timber and produce wood for residential construction. The logging industry is emerging from an unseasonably warm winter in some parts of the U.S. in addition to rising costs, which business leaders have cited as the reason for workforce cuts.

The salaries of oil and gas industry CEOs have climbed while they continue to cut their workforce, claiming to Congress at one point in 2022 that record retail gas prices were a result of a labor shortage. The largest companies by market capitalization in the sector have enjoyed record profits in recent years and paid shareholders handsomely.

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#17. Real estate and rental and leasing

– March 2023 layoffs: 19,000
— Change from prior month: +1,000
— Change from March 2022: No change
– March 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: +0.1 percentage points
— Change from March 2022: No change

The real estate industry was among the first to feel the effects of rising interest rates as the Federal Reserve began its attempts to control inflation in 2022. Thousands of real estate agents and brokers have lost their jobs since rates began increasing—and inventory has remained squeezed.

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#16. Educational services

– March 2023 layoffs: 28,000
— Change from prior month: -4,000
— Change from March 2022: +6,000
– March 2023 layoff rate: 0.7% (Rank: #14)
— Change from prior month: -0.1 percentage points
— Change from March 2022: +0.1 percentage points

The nation’s educational services industry comprises elementary and secondary school teachers, college professors, and nontraditional educators like online tutors. Colleges have struggled with a decline in overall enrollment since the onset of the pandemic, and some in the industry fear institutions may downsize.

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#15. Finance and insurance

– March 2023 layoffs: 31,000
— Change from prior month: +11,000
— Change from March 2022: +9,000
– March 2023 layoff rate: 0.5% (Rank: #16)
— Change from prior month: +0.2 percentage points
— Change from March 2022: +0.2 percentage points

Finance and insurance companies enjoyed an employment boom in recent years, spurred by the onset of the pandemic. Americans cooped up in their apartments and houses leaped at the chance to secure larger homes for themselves at historically low interest rates. In today’s higher interest rate environment, these firms may be poorly equipped to keep all their workers on the payroll. On the other hand, Americans have continued to borrow at surprising rates as inflation eats into their bottom lines.

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#14. State and local government education

– March 2023 layoffs: 33,000
— Change from prior month: -3,000
— Change from March 2022: -6,000
– March 2023 layoff rate: 0.3% (Rank: #18)
— Change from prior month: No change
— Change from March 2022: -0.1 percentage points

Public school teachers are represented in the state and local government education sector, which has struggled to attract and retain teachers over the last decade as public school funding has dried up. Record inflation has made teaching wages nearly unlivable in some places as conservative elected officials have slashed funding. Public schools may be forced to cut teachers if costs increase.

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#13. State and local government, excluding education

– March 2023 layoffs: 34,000
— Change from prior month: -6,000
— Change from March 2022: -3,000
– March 2023 layoff rate: 0.4% (Rank: #17)
— Change from prior month: No change
— Change from March 2022: No change

State and local governments feared that the U.S. could face a shortfall of tax revenue when the pandemic began. However, record federal rescue funds kept Americans spending and put ample money back into some state tax coffers. Other states are just now feeling tax revenues bounce back, leading to proposals to pass the savings on to voters via tax cuts in some places.

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#12. Information

– March 2023 layoffs: 38,000
— Change from prior month: -11,000
— Change from March 2022: +19,000
– March 2023 layoff rate: 1.2% (Rank: #6)
— Change from prior month: -0.4 percentage points
— Change from March 2022: +0.6 percentage points

The information industry includes those working in media, which took a haircut in 2022 as corporate media outlets slashed their head counts, citing uncertainty about the economy’s future. Interest in media—and with it, ad dollars—has not returned to the levels seen during the Trump administration as Americans tuned into cable news and visited news websites to keep up with two impeachments and near-weekly scandals.

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#11. Wholesale trade

– March 2023 layoffs: 47,000
— Change from prior month: -7,000
— Change from March 2022: +12,000
– March 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: -0.1 percentage points
— Change from March 2022: +0.2 percentage points

Wholesale trade companies are intermediaries that don’t necessarily advertise their business to consumers. They operate in the background, buying inventory from manufacturers and reselling it to retailers. An American working in wholesale may be employed by Costco or a medical wholesaler like McKesson.

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#10. Nondurable goods manufacturing

– March 2023 layoffs: 56,000
— Change from prior month: -5,000
— Change from March 2022: +5,000
– March 2023 layoff rate: 1.1% (Rank: #8)
— Change from prior month: -0.1 percentage points
— Change from March 2022: No change

The phrase “nondurable goods” is a fancy way of describing any item you can purchase that will go bad if left on a shelf for too long or will only provide the consumer with a single use before it’s gone. These items include some foods, cleaning products, and even cigarettes. Americans working in nondurable goods manufacturing might work for a food processor like Frito-Lay or a makeup brand.

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#9. Other services

– March 2023 layoffs: 64,000
— Change from prior month: +12,000
— Change from March 2022: +10,000
– March 2023 layoff rate: 1.1% (Rank: #8)
— Change from prior month: +0.2 percentage points
— Change from March 2022: +0.2 percentage points

The so-called “other services” category of American industry includes service-oriented jobs that don’t fit neatly into any other category. It includes jobs like equipment repair, religious work, and end-of-life care, according to the Bureau of Labor Statistics.

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#8. Durable goods manufacturing

– March 2023 layoffs: 65,000
— Change from prior month: +12,000
— Change from March 2022: +15,000
– March 2023 layoff rate: 0.8% (Rank: #11)
— Change from prior month: +0.2 percentage points
— Change from March 2022: +0.2 percentage points

Durable goods include any item you purchase that gets reused over time and does not expire. These can be plastic storage bins, children’s toys, and even technology like smartphones. Manufacturing of durable goods saw a boom in the first two years of the pandemic as consumers spent their incomes on the only things they could safely enjoy from their homes. Some manufacturers have since scaled back head counts as consumer demand has dropped off in the goods-producing sector and moved into services.

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#7. Arts, entertainment, and recreation

– March 2023 layoffs: 83,000
— Change from prior month: +11,000
— Change from March 2022: +20,000
– March 2023 layoff rate: 3.4% (Rank: #2)
— Change from prior month: +0.4 percentage points
— Change from March 2022: +0.6 percentage points

The arts and entertainment sector was among the hardest hit in the steep COVID-19 recession of 2020. Public health recommendations meant consumers were extremely wary of businesses like theme parks and airlines, which scaled back or closed operations for a time. Some have found recovery slow.

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#6. Transportation, warehousing, and utilities

– March 2023 layoffs: 105,000
— Change from prior month: -11,000
— Change from March 2022: +33,000
– March 2023 layoff rate: 1.4% (Rank: #4)
— Change from prior month: -0.2 percentage points
— Change from March 2022: +0.4 percentage points

The transportation warehousing and utilities industry encompasses the massive supply chain in the U.S., which experienced unending hiccups and shocks throughout the last several years. Freight shipping companies have laid off staff over the last year, citing difficult economic conditions that have slowed demand.

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#5. Retail trade

– March 2023 layoffs: 135,000
— Change from prior month: -21,000
— Change from March 2022: -10,000
– March 2023 layoff rate: 0.9% (Rank: #10)
— Change from prior month: -0.1 percentage points
— Change from March 2022: No change

Retail trade is one of the largest employers in the country and includes employees at companies like Target and Kroger brand grocery stores. Workers in these industries have faced some of the most difficult working conditions as they served customers through the dangers of the pandemic. In 2023, companies like Walmart and Nordstrom announced cuts to their workforces.

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#4. Health care and social assistance

– March 2023 layoffs: 154,000
— Change from prior month: +42,000
— Change from March 2022: +39,000
– March 2023 layoff rate: 0.7% (Rank: #14)
— Change from prior month: +0.2 percentage points
— Change from March 2022: +0.1 percentage points

The health care and social assistance sector is experiencing rising demand for its services as Americans continue to get older and live longer on average. The pandemic exhausted health care workers and accelerated the shift from in-hospital care to home care for elderly patients. While medical care costs have risen with inflation, the health care industry is also at a crisis point trying to attract enough new nurses to care for Americans.

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#3. Accommodation and food services

– March 2023 layoffs: 173,000
— Change from prior month: +63,000
— Change from March 2022: +40,000
– March 2023 layoff rate: 1.2% (Rank: #6)
— Change from prior month: +0.4 percentage points
— Change from March 2022: +0.2 percentage points

The accommodation and food services industry comprises hotels, motels, full-service restaurants, and fast-food chains that employ tens of millions of Americans. These leisure services struggled in the first two years of the pandemic as Americans pulled back on activities they felt could expose them to COVID-19 and are adjusting to new economic realities.

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#2. Construction

– March 2023 layoffs: 294,000
— Change from prior month: +112,000
— Change from March 2022: +172,000
– March 2023 layoff rate: 3.7% (Rank: #1)
— Change from prior month: +1.4 percentage points
— Change from March 2022: +2.1 percentage points

The construction industry suffered a crippling pause at the start of the pandemic that resulted in a shock to home inventory. But as the pandemic progressed, so did new home, multifamily, and commercial construction. Now pressure is coming from higher interest rates driving down demand for new homes.

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#1. Professional and business services

– March 2023 layoffs: 431,000
— Change from prior month: +49,000
— Change from March 2022: +42,000
– March 2023 layoff rate: 1.9% (Rank: #3)
— Change from prior month: +0.2 percentage points
— Change from March 2022: +0.2 percentage points

The professional and business services industry comprises attorneys, accountants, and other professionals who support businesses in mostly white-collar positions. Many of these positions have been safe over the past three years as demand from consumers remained hot and companies seemingly couldn’t find enough workers to fill jobs. But interest rate hikes and bank failures may spell trouble.

Data reporting by Paxtyn Merten. Story editing by Jeff Inglis. Copy editing by Paris Close.