These industries offer the best and worst job security in 2024
- The Arts, entertainment and recreation industry offers the least job security, with the highest layoff rate at 2.98%, according to data from the Bureau of Labor Statistics.
- The Construction industry has the second highest layoff rate at 1.80% on average.
- Jobs in the Federal government offer the best job security with a layoff rate of just 0.22%.
The industries with the best and worst job security have been revealed in a new analysis of government data.
Leading offshore marketplace Outsource Accelerator analysed data from the US Bureau of Labor Statistics to calculate the average layoff rates for different industries, to determine which are the most and least secure sectors to work in.
It found that the Arts, entertainment, and recreation industry offers the least job security, with an average layoff rate of 2.98% throughout 2022. This equates to 69,400 employees being laid off per month on average in this industry.
The Construction industry offers the second worst job security with a layoff rate of 1.80%, the equivalent of 139,200 people being laid off on average per month.
Professional and business services were found to have the third worst job security at a 1.56% layoff rate. This industry, which includes those working in accounting, engineering, veterinary, advertising and computer services to name a few, was found to have the highest number of layoffs per month on average at 353,000 people, however, ranks third when adjusted for the total number of workers in the industry which stands at approximately 22.6 million.
The Information industry, which covers those working in image and sound recording, digital and print publishing and telecommunications jobs, ranked as having the fourth highest layoff rate (1.12%). Other services, which encompasses professions such as equipment and machinery repair, dry cleaning or laundry services, providing personal and pet care, grantmaking and promoting religious activities, ranked fifth (1.06%).
Industries ranked by layoff rate
| Industry | Average number of layoffs per month | Layoff rate | |
| 1. | Arts, entertainment, and recreation | 69,400 | 2.98% |
| 2. | Construction | 139,200 | 1.80% |
| 3. | Professional and business services | 353,200 | 1.56% |
| 4. | Information | 33,800 | 1.12% |
| 5. | Other services | 61,000 | 1.06% |
| 6. | Transportation, warehousing, and utilities | 78,000 | 1.08% |
| 7. | Nondurable goods manufacturing | 48,000 | 0.98% |
| 8. | Mining and logging | 5,000 | 0.78% |
| 9. | Accommodation and food services | 112,400 | 0.82% |
| 10. | Real estate and rental and leasing | 17,800 | 0.78% |
| 11. | Retail trade | 140,600 | 0.88% |
| 12. | Educational services | 24,600 | 0.64% |
| 13. | Wholesale trade | 36,800 | 0.62% |
| 14. | Durable goods manufacturing | 48,400 | 0.60% |
| 15. | Health care and social assistance | 126,400 | 0.60% |
| 16. | State and local government, excluding education | 38,600 | 0.44% |
| 17. | Finance and insurance | 26,000 | 0.40% |
| 18. | State and local education | 33,600 | 0.30% |
| 19. | Federal government | 7,000 | 0.22% |
Jobs in the Federal government were found to be the most secure, with a layoff rate of just 0.22%. This is the equivalent of 7,000 employees out of the 3.1 million in total for this sector, being laid off every month.
The State and local education sector ranked as the second most secure, following closely behind with a layoff rate of just 0.30%, the equivalent of 33,600 layoffs per month on average out of a workforce of 11.2 million people.
The Finance and insurance industry ranked as the third most secure with a layoff rate of 0.40% on average.
“The level of job stability associated with each industry should be an important consideration for anybody entering the job market for the first time or considering a change of career,” says Outsource Accelerator founder and CEO, Derek Gallimore.
“By analyzing publicly available government data on layoffs and discharge rates, we were able to rank which industries offer the most and least job security.
“While the difference between the percentages may at first appear small, we found that those in the Arts, entertainment and recreation industry are actually thirteen times more likely to be laid off than those working for the Federal government.
“According to the North American Industry Classification System (NAICS) this includes those working for or within the performing arts, museums, historical sites, casinos, and other leisure-based occupations.” Derek adds.
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Methodology:
The above data table from the US Bureau of Labor Statistics was used. The average number of layoffs per month and layoff rates were calculated by averaging available figures from June 2022 – October 2022.
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