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NEWS

Healthcare Hiring Cushions a Weak August Jobs Report

The U.S. labor market slowed sharply in August, but healthcare continued to add jobs and effectively carried overall growth. The Bureau of Labor Statistics reported +31,000 healthcare jobs in August—below the sector’s 12-month average of +42,000, yet enough to offset weakness elsewhere as total nonfarm payrolls rose by just +22,000 and the unemployment rate edged up to 4.3%.

Within healthcare, gains were broad: ambulatory health care services +13,000, hospitals +9,000, and nursing & residential care +9,000. Social assistance (tracked alongside education & health services) also trended higher (+16,000), highlighting ongoing demand for individual and family services.

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The sector’s resilience stood in contrast to pullbacks elsewhere: federal government employment fell by 15,000 and mining/oil & gas also declined, contributing to the tepid headline number. That backdrop underscores how central healthcare has been to 2025 job creation; removing it from August would have left overall payroll growth near zero.

What we’re watching: Healthcare’s hiring pace has moderated from earlier in the year, but demographics and care demand continue to support expansion—especially in outpatient settings. We’ll track whether hospitals sustain recent gains amid margin pressure and whether long-term care hiring can keep climbing given tight labor supply. Next BLS update is scheduled for October 3, 2025.