New projections from the U.S. Labor Department indicate that healthcare and social assistance jobs will see substantial growth over the next decade, while administrative roles may decline sharply due to the increasing influence of artificial intelligence.
As the United States grapples with a rapidly aging population and a rise in chronic health conditions, the U.S. Department of Labor has released new projections indicating significant employment growth in the healthcare and social assistance sectors. From 2025 to 2035, employment in these sectors is anticipated to increase by 9.5%, representing the addition of approximately 2.2 million jobs. This figure is expected to account for roughly 37% of all new U.S. jobs created during that period.
The Labor Department attributes this growth primarily to the increasing prevalence of chronic health issues, including heart disease, cancer, and diabetes, which necessitate a larger workforce to provide essential healthcare services. This trend highlights a pivotal shift in labor demand towards sectors that directly support public health, reflecting broader demographic changes in the country.
Fastest Growing Sectors
Interestingly, the utilities sector is projected to be the fastest-growing industry over the next decade, with a growth rate of 9.8%. However, due to the relatively modest size of the sector, this increase is expected to yield only about 58,800 new jobs. The driving force behind this growth is the escalating demand for energy, particularly as artificial intelligence (AI) technologies become more prevalent, requiring substantial energy inputs.
Additionally, the professional, scientific, and technical services sector is projected to add nearly 927,000 jobs, largely fueled by the burgeoning demand for AI-related systems and tools. Breyon Williams, chief labor market economist at Groundwork Collaborative, emphasized that “a lot of those nearly 1 million jobs relate to AI demand, including roles for software developers, consultants, and engineers.” This shift underscores a significant transformation in the job market, where skills related to AI and technology are becoming increasingly essential.
Healthcare Occupations in High Demand
Within the healthcare sector, several specific occupations are expected to experience particularly robust growth. Nurse practitioners, for instance, are predicted to see an extraordinary 41% increase in employment, with a median salary of $132,300 projected for 2025. Other positions anticipated to see substantial growth include solar photovoltaic installers (37% growth), data scientists (35% growth), and wind turbine service technicians (30% growth).
The demand for healthcare services is also expected to drive the need for medical and health services managers, who are projected to see a 24% increase in employment. Other roles such as physical therapist assistants (23% growth) and psychiatric technicians (22% growth) are also on track for significant employment increases. These anticipated trends reflect the broader shifts in demographics and health needs within the American population.
Job Declines Amidst AI Advancement
While certain sectors are poised for growth, the rise of AI presents challenges for other industries. Economists forecast that approximately 752,000 administrative jobs will be eliminated over the next decade, affecting roles such as office clerks, customer service representatives, and secretaries. Williams noted the mixed nature of these projections, stating, “The story is mixed. There are some gains from AI demand coupled with losses in places where it’s not surprising we’d see some drop-offs.”
Furthermore, the Labor Department has indicated that AI advancements may also limit job opportunities in creative fields, encompassing arts, design, entertainment, sports, and media. The increasing reliance on AI tools could lead to a decline in demand for human labor in these traditionally stable sectors, raising concerns about the future of employment in creative industries.
Federal Employment Trends
Federal government jobs are also expected to see a contraction, with a projected decrease of 3.4% from 2025 to 2035. This anticipated reduction reflects wider trends in public sector employment, driven by technological advancements and ongoing budgetary constraints that continue to shape hiring practices within the government.
Occupational Projections for Declining Fields
Focusing on occupations facing the steepest declines, the Labor Department identified several administrative support roles that are predicted to experience significant employment decreases. For example, word processors and typists are expected to face a staggering 34.4% reduction in employment, while telephone operators and data entry keyers are projected to decline by 27.6% and 25.5%, respectively. These alarming figures highlight a substantial transition within the workforce as automation and digital tools increasingly replace manual tasks traditionally performed by humans.
Overall, the Labor Department’s projections paint a complex and evolving landscape for the U.S. job market. While significant opportunities lie ahead in healthcare and technology sectors, the displacement of jobs in administrative and certain creative fields presents considerable challenges for workers. As the economy continues to evolve, the ability to adapt and acquire new skills will be critical for the workforce to successfully navigate the changes on the horizon.
