Data centers and healthcare were bright spots in the rough September jobs report
White-collar sectors continued to struggle in September, according to a dreary jobs report. But healthcare and construction were bright spots.
The U.S. added a paltry 29,000 jobs in September, falling short of economist projections. Amid this sluggish labor market, healthcare and data centers emerged as glimmers of hope for job seekers. Both sectors currently appear robust, though the longevity of the data center boom remains uncertain. Over the past year, healthcare has remained a reliable sector, with September's data confirming its steady growth, albeit at a slower rate.
Construction also posted a respectable 11,000 new roles, with the majority of these positions concentrated in nonresidential specialty trade contractors, such as electricians and other construction workers involved in data center builds and similar projects. Healthcare added approximately 17,000 positions, representing a significant portion of the total 29,000 jobs added nationwide, but accounting for roughly half of the industry's average monthly job growth of 33,000.
Cory Stahle, an economist at Indeed Hiring Lab, believes healthcare presents long-term opportunities due to the growing demand for healthcare professionals to care for an aging population. However, Nicole Bachaud, a ZipRecruiter economist, suggests that the slowdown in healthcare hiring might be attributed to funding issues that are complicating efforts to hire additional workers.
Despite the healthcare sector's 16,700 job gains, the government sector lost 17,000 jobs. White-collar industries also experienced job cuts, with the information sector shrinking from its 2022 peak of 3.1 million employed to 2.7 million last month. The construction sector's 11,000 job increase was largely driven by nonresidential specialty trade contractors, where employment rose by 12,300.
The data center boom, which is projected to be the largest capital expenditure project in U.S. history, is boosting construction employment and spending. Since June 2024, data center-related job postings have surged by nearly 130%, while overall U.S. job postings have declined. Experts agree that while data centers may offer short-term employment growth, their long-term viability as a major employment driver is still unclear.
Guy Berger, a senior fellow at the Burning Glass Institute, warns that if the data center boom is shorter than anticipated, many electricians and other professionals trained for this sector may find their skills no longer in demand.
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