Layoff announcements have remained a regular feature of the U.S. labor market in 2026, but the picture is far from uniform. While some states have seen job-cut announcements surge from relatively low levels, others that recorded heavy reductions last year have experienced substantial declines.
The wider labor market is also more mixed than the layoff headlines alone suggest. Employers announced 33,429 job cuts in July, 46% fewer than a year earlier, while announced hiring plans through July were 25% higher than during the same period in 2025. Separately, the U.S. unemployment rate stood at 4.1% in July and changed little over the month.
A new state-by-state analysis by IRIS Software Group compared announced job cuts through July 2026 with figures from the same period in 2025 to reveal where layoffs have risen most sharply.
1. Vermont
Vermont records the largest percentage increase in the country. Announced cuts rose from just 172 in 2025 to 739 in 2026, a 329.65% increase.
The low starting point is important. Vermont ranks only 38th nationally for the total number of cuts in 2026, so its No. 1 position reflects the scale of the change rather than an exceptionally large number of layoffs.
2. Indiana
Indiana ranks second, with announced job cuts jumping 258.65%, from 1,069 to 3,834.
Unlike Vermont, Indiana's increase represents a more substantial numerical rise of 2,765 cuts. The state ranks 21st nationally by total announced job cuts, showing how quickly its position has changed compared with last year.
3. Idaho
Idaho's total rose from 330 to 1,002, equivalent to a 203.64% increase.
That means announced cuts have more than tripled, although Idaho remains toward the lower end nationally in raw numbers, ranking 35th for total 2026 cuts. Again, a relatively low 2025 base magnifies the percentage increase.
4. Arkansas
Arkansas follows closely, recording a 196.54% increase as announced cuts climbed from 520 to 1,542.
The state ranks 30th nationally by total cuts, meaning the rise is significant compared with Arkansas's own 2025 level without placing it among the country's biggest layoff markets overall.
5. Connecticut
Connecticut has seen announced cuts nearly triple, increasing 195.83% from 1,440 to 4,260.
It ranks 19th nationally for total cuts, making Connecticut's rise more substantial in absolute terms than several of the smaller states ahead of it. Recent BLS data also showed Connecticut had one of the country's largest year-over-year increases in its unemployment rate through June, although the two datasets measure different things and should not be treated as directly causal.
6. Michigan
Michigan is arguably the standout result among the top 10. Announced job cuts increased 167.20%, from 11,327 to 30,266.
That is an increase of 18,939 cuts, the largest absolute increase among the states in the ranking. Michigan also ranks fifth nationally for total announced cuts in 2026, meaning its rise is not simply the result of a small starting figure.
7. Oregon
Oregon recorded 7,559 cuts, compared with 3,202 at the same point last year, an increase of 136.07%.
The state ranks 15th nationally by total cuts and added 4,357 announcements year over year. Oregon therefore combines a relatively high percentage increase with a meaningful rise in the actual number affected.
8. Tennessee
Tennessee has also experienced a particularly large shift, with announced cuts increasing 124.75%, from 8,138 to 18,290.
That represents 10,152 additional cuts, placing Tennessee ninth nationally by total job-cut announcements. It is one of only three states in the top 10 for percentage growth that also ranks inside the national top 10 for raw cuts.
9. South Carolina
South Carolina recorded 5,482 announced cuts, up from 2,608, an increase of 110.20%.
The state ranks 18th nationally by total cuts. Its figures show that the rise in layoff announcements is not confined to traditionally larger employment centers.
10. Colorado
Colorado completes the top 10 after cuts climbed from 3,547 to 6,770, a 90.87% increase.
The additional 3,223 cuts put Colorado 16th nationally by total announcements. While it is the only top-10 state where cuts did not at least double, the increase is still close to 91%.
States where job cuts fell the most
At the opposite end of the ranking, Maine recorded the sharpest reduction. Announced cuts fell from 4,711 to 300, a 93.63% decline, placing it 41st nationally by total 2026 cuts.
South Dakota follows with an 85.79% reduction, falling from 373 to only 53 announced cuts. It has the second-lowest total in the country, ranking 49th.
In Kansas, announced cuts declined 84.52%, from 2,700 to 418. The state now ranks 40th nationally for total cuts.
Rhode Island saw a similarly steep decline of 82.75%, with its total dropping from 939 to 162. That leaves the state 45th nationally by total cuts.
Finally, Oklahoma recorded 276 announced cuts, down from 1,561 in 2025, representing an 82.32% decrease and placing it 43rd nationally.
Full ranking:
| Rank | State | YTD 2026 | YTD 2025 | 2026 vs 2025 % change |
| 1 | Vermont | 739 | 172 | 329.65 |
| 2 | Indiana | 3,834 | 1,069 | 258.65 |
| 3 | Idaho | 1,002 | 330 | 203.64 |
| 4 | Arkansas | 1,542 | 520 | 196.54 |
| 5 | Connecticut | 4,260 | 1,440 | 195.83 |
| 6 | Michigan | 30,266 | 11,327 | 167.20 |
| 7 | Oregon | 7,559 | 3,202 | 136.07 |
| 8 | Tennessee | 18,290 | 8,138 | 124.75 |
| 9 | South Carolina | 5,482 | 2,608 | 110.20 |
| 10 | Colorado | 6,770 | 3,547 | 90.87 |
| 11 | Nevada | 3,561 | 1,891 | 88.31 |
| 12 | North Dakota | 180 | 96 | 87.50 |
| 13 | Wisconsin | 4,084 | 2,358 | 73.20 |
| 14 | Massachusetts | 13,892 | 9,044 | 53.60 |
| 15 | Washington | 40,450 | 26,524 | 52.50 |
| 16 | New Mexico | 296 | 203 | 45.81 |
| 17 | North Carolina | 8,238 | 6,019 | 36.87 |
| 18 | Georgia | 37,758 | 28,068 | 34.52 |
| 19 | Mississippi | 1,337 | 1,056 | 26.61 |
| 20 | Virginia | 6,199 | 4,932 | 25.69 |
| 21 | Texas | 42,030 | 34,204 | 22.88 |
| 22 | Florida | 19,790 | 16,905 | 17.07 |
| 23 | Illinois | 15,985 | 14,168 | 12.82 |
| 24 | West Virginia | 1,034 | 989 | 4.55 |
| 25 | Kentucky | 2,984 | 2,944 | 1.36 |
| 26 | New Jersey | 26,771 | 26,695 | 0.28 |
| 27 | Pennsylvania | 12,259 | 14,950 | -18.00 |
| 28 | California | 93,722 | 114,676 | -18.27 |
| 29 | Utah | 780 | 994 | -21.53 |
| 30 | Missouri | 2,834 | 3,702 | -23.45 |
| 31 | New Hampshire | 90 | 118 | -23.73 |
| 32 | Delaware | 117 | 209 | -44.02 |
| 33 | Montana | 132 | 244 | -45.90 |
| 34 | Alabama | 3,315 | 6,530 | -49.23 |
| 35 | Louisiana | 585 | 1,159 | -49.53 |
| 36 | Iowa | 2,989 | 5,990 | -50.10 |
| 37 | Maryland | 3,688 | 7,483 | -50.71 |
| 38 | Minnesota | 1,905 | 5,323 | -64.21 |
| 39 | Wyoming | 9 | 28 | -67.86 |
| 40 | New York | 22,620 | 76,038 | -70.25 |
| 41 | Nebraska | 1,435 | 4,869 | -70.53 |
| 42 | Arizona | 3,203 | 12,514 | -74.40 |
| 43 | Ohio | 8,547 | 37,938 | -77.47 |
| 44 | Oklahoma | 276 | 1,561 | -82.32 |
| 45 | Rhode Island | 162 | 939 | -82.75 |
| 46 | Kansas | 418 | 2,700 | -84.52 |
| 47 | South Dakota | 53 | 373 | -85.79 |
| 48 | Maine | 300 | 4,711 | -93.63 |
Methodology
The study analyzed state-level job-cut announcements published by Challenger, Gray & Christmas, comparing figures from January through July 2026 with the same period in 2025.
The percentage change was calculated as the difference between YTD 2026 and YTD 2025 job cuts, divided by the 2025 figure and multiplied by 100. States were ranked from the largest percentage increase to the largest decline.
The figures represent announced job cuts, rather than a count of every worker who has already been laid off.
Source: Challenger, Gray & Christmas
