Healthcare expansion and artificial intelligence demands are reshaping the American labor market over the decade spanning from 2025 to 2035, according to new employment projections released by the U.S. Bureau of Labor Statistics. The federal data forecasts that the healthcare and social assistance sector will add 2.2 million jobs, accounting for roughly 37 percent of all new U.S. employment growth as the population ages and chronic health conditions rise.
Healthcare Sector Growth and Aging Demographics
America’s aging population and a climbing incidence of chronic health conditions such as cancer, heart disease, and diabetes will drive massive gains across medical and social assistance fields. According to Labor Department data, total employment in healthcare is projected to expand by 9.5 percent through 2035. This sustained expansion reflects long-term demographic shifts that require a steady influx of clinical staff, home health aides, and support specialists to meet patient needs nationwide.
Artificial Intelligence Powers Utilities and Tech Services Surge
While healthcare dominates total job creation by volume, the utilities sector is projected to be the fastest-growing U.S. industry over the decade, expanding by 9.8 percent through 2035 according to federal projections. This growth is driven directly by surging energy demands required to power artificial intelligence systems and data centers. However, due to the relatively modest overall size of the sector, that 9.8 percent growth will translate to 58,800 new jobs over the ten-year period.
Concurrently, expanding research and development in the AI space will create nearly 927,000 jobs within the professional, scientific, and technical services sector. Breyon Williams, chief labor market economist at the economic think tank and advocacy group Groundwork Collaborative, noted the distinct composition of these technical additions. “A lot of those nearly 1 million jobs relate to AI demand. It’s your software developers, consultants, and engineers,” Williams told CBS News.
Administrative and Retail Job Losses Projected
The labor market transformation driven by automation and artificial intelligence presents a mixed outlook, resulting in notable declines in routine administrative functions. According to federal projections cited by economists, the proliferation of AI tools will reduce demand for office workers, customer service representatives, and retail positions.
“It’s not surprising that 752,000 administrative jobs, like office clerks, customer service reps, and secretaries, are projected to be eliminated within the next 10 years,” Williams said regarding the Labor Department data. “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.”
In addition to administrative cuts, the Labor Department notes that artificial intelligence adoption could limit employment demand within specific creative and support fields, including arts, design, entertainment, sports, and media occupations. Meanwhile, federal government employment is projected to contract by 3.4 percent between 2025 and 2035, reflecting different budgetary and operational pressures across public institutions.
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