Only Healthcare is Hiring

labor economy demographics BLS AI

According to the Bureau of Labor Statistics January jobs report posted last week, of the 130k net jobs the US economy added January, an astounding 124K of those jobs came from the healthcare and social assistance industry. (To illustrate net jobs: last month, construction added 33K jobs, but the government lost 42K, for a net loss of 9K jobs.) Zooming out further, the healthcare and social assistance industry employs 1.6M more people than it did in January 2024; on net, the rest of the economy employs 28K fewer people. The healthcare subsectors with the largest job increases—social assistance, which involves direct care work with minimal specific training, and ambulatory health care services, which employs millions of medical secretaries and assistants alongside higher-licensed staff—are expected to continue growing as the population ages and healthcare shifts outpatient. They also have less exposure to AI automation, which alongside the effect of tariffs, is thought to be a primary contributor to the sluggish job market. AI is already far more capable of writing business reports (and newsletters) than it ever will be at changing diapers and bedsheets. Those tasks will remain safely within human hands for the foreseeable future. 

From newsletter: Camelot This Is Not