The U.S. labor market continues to add jobs, yet layoffs are affecting various industries as October begins. Recent data from ADP indicates that private employers created 90,000 jobs in September. Growth primarily occurred in the health care, education, and hospitality sectors. In contrast, white-collar areas such as financial activities and professional services witnessed job losses. This trend is expected to persist in the coming month.
Mixed Economic Signals
The announcements of layoffs are arriving amid mixed economic indicators. Employers still generate jobs, wages grow, and unemployment rates remain low. Despite this, hiring is more focused on healthcare and service-sector roles as opposed to higher-paying corporate, tech, and finance positions.
For many job seekers, this means that while the labor market seems robust, finding specific office-based jobs remains a challenge.
Key Companies Facing Layoffs
Based on WARN Act databases, several companies have disclosed significant layoffs for October.
Industries Experiencing Pressure
Financial Services
The financial sector continues to struggle, with recent data from ADP showing a reduction of 16,000 jobs in September within financial activities. This sector was the weakest performer in ADP’s report. Banks, which had expanded significantly in prior years, are now restructuring.
A financial literacy instructor from the University of Tennessee at Martin, Alex Beene, stated to Newsweek, “Financial jobs are disappearing primarily because the industry is undergoing two transitions simultaneously: higher borrowing costs have weakened lending and real estate, while AI is executing many routine tasks.”
Institutions like Wells Fargo, Bank of America, and Citigroup are listed in WARN databases for 2026.
Professional and Business Services
This sector, covering consulting firms, back-office operations, and more, saw a loss of 11,000 jobs in September. Experts link these losses to reduced corporate spending and the rise of AI replacing some roles.
Kevin Thompson, CEO of 9i Capital Group, shared with Newsweek, “The answer lies between AI and interest rates. With higher interest rates, financial activity decreases.”
Data Overview
During 2026, hundreds of thousands have been affected by layoff notices, according to the WARN database. Nearly 317,000 workers experienced over 3,651 WARN notices across 44 states.
Despite this, ADP’s report underscores overall labor market resilience. Education and health services added 55,000 jobs, while leisure and hospitality grew by 22,000 in September.
ADP Chief Economist Nela Richardson remarked, “It’s a strong report. After a slowdown, job creation has rebounded with solid pay growth.”
Future Outlook
The economy faces a paradox where jobs are plentiful, yet not always within traditional high-paying sectors. Financial careers, while not disappearing, are evolving.
Beene noted, “Jobs reliant on repetitive transactions and basic underwriting face pressure, while demand remains for analysts who merge financial expertise with technology.”