Despite recession fears, industries like healthcare are booming with jobs
getty
The much-anticipated jobs report, delayed by the longest U.S. government shutdown in history, has arrived, and the news has brought mixed emotions.
There’s the upside: 119,000 more jobs were added in September, to the surprise of many analysts, especially when only 55,000 non-farm payrolls were added between May and August and only 50,000 were projected for September.
(But on the flip side, today’s jobs report indicates that the unemployment rate is, to quote WSJ who originally reported, “ticked up to a four-year high of 4.4%.” And unfortunately, we won’t be able to see full jobs data for October due to limited federal activity during the shutdown.)
What’s Behind This Surge?
So, which industries actually saw growth in September? While federal employment and jobs in transportation and warehousing tanked, these industries saw the most job gains according to the BLS (U.S. Bureau of Labor Statistics):
- Healthcare – 43,000 jobs (Ambulatory healthcare and hospital jobs are largely responsible for the uptick.)
- Food services/drinking places – 37,000 jobs
- Social assistance, specifically individual and family services – 20,000 jobs
Why Is Demand Strong In These Industries?
Despite brewing recession fears with lowered consumer confidence and even Trump aides raising concerns about some parts of the economy being already in a recession (New York Times reported this), demand within these three industries is likely strong because healthcare food services, and social assistance are very resilient industries where demand is still very strong regardless of the economy.
MORE FOR YOU
For example, the U.S. has an aging population, so this would require more social assistance and healthcare support, even ambulatory support. Chronic illnesses and urgent care still occur regardless of where the economy is positioned, making healthcare jobs one of the most recession-proof career options right now. Even the NIH (National Institutes of Health) noted that healthcare employment remains very stable across business cycles and interestingly experiences a boost during economic downturns:
“If anything, when counties experience more severe economic downturns, healthcare employment seems to increase. Even during the Great Recession, which saw employment fall in most sectors, employment in healthcare held steady and grew as a share of all employment.”
Equally, elderly care, disability services, childcare, and family services don’t disappear because of a recession. Often, economic instability can cause demand on these services to spike, meaning jobs spike as well. And of course, food services and eating out can be deemed luxuries, but cheap, affordable and convenient services largely remain resilient even under economic pressures.
AI-Proof Jobs
Another good thing about getting a job in one of these sectors is that they have a large number of AI-proof roles, making them even more resilient and best choices for future-proofing your job security.
This is because even though AI can automate many tasks, it still lacks competence in tasks and roles that require human oversight, judgement, and in-person care, such as:
- Nurses and doctors
- Therapists and counselors (AI chatbots cannot fully replace the work of mental health professionals although they are used by many as a substitute)
- Social workers
- Chefs
The aging population is increasing the demand for the expertise of care workers
getty
What AI is doing, however, is augmenting these industries, providing a new layer of technical infrastructure that renders professionals in these fields more effective, and makes it easier for their services delivered in a timely and insightful manner.
The glimpse of these three sectors in the jobs report indicates that regardless of whether a full nationwide recession becomes a reality or not, the future of work is still heavily centered on the human touch and personal insight, even in a time when AI is taking over workplaces.