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12 States Predicted to LOSE the Most Jobs in 2026

American employers announced 1.2 million job cuts in 2025—the highest since the pandemic—and the forces behind those losses are accelerating into 2026. Federal agencies axed 271,000 positions. AI erased 54,000+ roles by official count. Tariffs are projected to leave U.S. payrolls 1.3 million jobs lighter by late 2026. But the damage isn't hitting evenly. Twelve states are absorbing the worst of it—where tech layoffs, factory closures, federal workforce gutting, and fiscal collapse are converging simultaneously. Here's what the data reveals, state by state, ranked by layoff velocity, unemployment trajectory, industry exposure, and fiscal fragility.

In this deep dive, I'll break down:
✅ The 12 states facing the steepest job losses heading into 2026—and why ✅ How California's 175,761 announced cuts and $18 billion deficit are gutting the nation's largest economy
✅ Why Wall Street's record $60 billion in profits is producing record layoffs in New York
✅ The DOGE-driven federal cuts that erased six years of employment gains in Virginia in just 11 months
✅ Michigan's auto industry collapse—120,600 parts jobs remaining from a peak of 230,000
✅ How three companies (Amazon, Microsoft, Boeing) are dismantling Washington's economic backbone
✅ The multiplier math that turns 18,000 federal job cuts into 39,178 total losses in Maryland
✅ Why these aren't cyclical downturns—and what structural transformation means for workers over 50

Key Takeaways:
California: 175,761 announced cuts in 2025—73,499 in tech alone (43% of all U.S. tech layoffs)
Washington: 78,943 announced cuts; Seattle area's first annual employment decrease since 2009
Michigan: Unemployment surged to 5.4%—largest year-over-year increase (+1.4 pts) of any state
New York: 109,030 announced cuts; financial services layoffs exceeded hiring for 19 consecutive months
Maryland: 24,900 federal jobs lost—more than any state; unemployment climbed from 3.0% to 4.2%
Texas: 55,681 announced cuts; national rig count collapsed from 1,868 (2014) to 538 (Aug 2025)
New Jersey: 66,923 announced cuts; 2,200+ pharmaceutical layoffs from patent cliffs hitting simultaneously
Illinois: $218 billion in unfunded pension liabilities—worst in nation—with pension funds averaging 49% funded
Oregon: 5,400+ Intel layoffs since Aug 2024; state averaging 600+ mass layoffs per month (Great Recession pace)
National: Job openings fell to 6.54 million—ratio of open jobs to unemployed workers dropped below 1:1

📊 Sources:
Challenger, Gray & Christmas — Layoff Announcements & Job Cut Data
Yale Budget Lab — Tariff Employment Impact Projections
Bureau of Labor Statistics — State Unemployment & Employment Data
U.S. Census Bureau — Population & Migration Estimates
Weldon Cooper Center — Federal Workforce Multiplier Analysis
MultiState Associates — State Fiscal Outlook Reports
UCLA Anderson Forecast — California Employment Projections
Moody's Analytics — National Unemployment Forecasts
Greater Houston Partnership — Energy Sector Employment Data
WARN Act Filings — State-Level Mass Layoff Notices