Health Care & Social Assistance Accounts for a Majority of US Job Creation for Three Straight Years.
2026 is off to a better that than 2025, assuming you believe the jobs data.
Regardless, we are in a very low job growth environment, heavily dependent on taking care of aging boomers instead of producing anything.
Healthcare and Social Assistance Month-Over-Month Change
Starting in 2024, but especially 2025, the jobs economy became totally dependent on Health Care.
Health Care and Social Assistance Detail
In 2025, there was negative net job creation six times. Health care lost jobs only once.
Fewer and fewer people are paying into the system as more and more boomers retire dependent on Medicare and Social Security.
Yet, economic illiterates are demanding Trump deport 20 million people as if there are job replacements.
The economy would immediately crash if the racist illiterates got there way because the boomers will still be here needing services.
Mass deportations would cause an immediate shortage of skilled trade like roofing, electrical, framing, tile work, mechanics, and meat packing.
There would also be an immediate shortage of non-skilled labor especially leisure and hospitality, and agriculture.
The price of labor would skyrocket and inflation along with it.
Fed In a Nasty Spot
The Fed, Congress, and Trump are in a nasty spot.
The Fed may or may not understand this setup, but Trump and Congress surely don’t.
Related Posts
July 1, 2026: Manufacturing ISM Up 6 Straight Months, Employment Down 33 Straight Months
Price growth moderated but have input prices have rapidly increased for 21 months.
July 2, 2026: ADP Reported 98,000 New Jobs in June.
Job creation was uneven in June. Financial activities and information were among the gainers, while leisure and hospitality delivered a sixth month of weak hiring.
“The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries. For now, the overall effect is a slowdown in job creation,” said Dr. Nela Richardson ,Chief Economist, ADP
July 2, 2026: Jobs Market: What’s Hot, What’s Not, and What’s Shaky?
There’s some interesting changes so far this year compared to 2025.
July 2, 2026: Economy Adds Only 57,000 Jobs in June, Huge Negative Revisions
Employment dropped by 507,000. The unemployment rate fell because the labor force plunged by 720,000.
Leisure and Hospitality is no longer adding jobs according to two reports. That’s a significant change.
Economic illiterate pipes in here with one word – ROBOTS! 😁
Getting rid of to be superfluous human workers, starting with those who should not be in the country in the first place, will make it easier as robots take their jobs. If these soon to be superfluous workers are no longer in the country, then we won’t need to provide food and social support services for them, as we will have to do for citizens.
The monopolistic socialized gov/med/edu/insuro cartels are most of the economy and will keep growing along with inflation.
Mish
You are right this is evidence of a big problem. The us is continually and increasingly consuming more than it produces. At a summary level it shows up in the huge trade deficit and budget deficits. This is unsustainable, meaning at some point it will end. The longer the pain is put off the more painful it will be. Once most of our assets are either owned by or mortgaged to foreigners and they stop loaning us more money the sh will hit the fan. This years little bout of inflation will be nothing compared to the serious bad times. No politicians are willing to take action and I know of no major economists even calling for action. Sure it will be painful but the longer we wait the worse it gets.
Electrician is a skilled trade, so that’s one.
Meatpackers? Like the ones at Chicago Union Stockyards 125 years ago? You mean “the sticker” guy?
“…skilled trade like roofing, electrical, framing, tile work, mechanics, and meat packing.”
Roofing, framing, tile work and meat packing are not skill trades… and I’ve done them,, monotonous is a better description… now electrical and mechanic take some smarts and understanding of how things work..
Most U.S. doctors are quietly using this AI tool. Few patients know about it.
https://www.nbcnews.com/tech/tech-news/openevidence-ai-doctor-medical-physician-login-app-what-npi-uptodate-rcna341064
I’m glad they are using it. I just went to my GP for the first time; he’s a smart young guy at a major teaching hospital. He couldn’t figure out what my problem was but told me to come back in a month if it was still an issue. I just went on google AI and was given a really plausible explanation and home treatments that are already helping. I’ll tell the GP when I go in next week (if I don’t just cancel).
Serving in the US Navy showed me first-hand that no first-class society can exist without some kind of permanent underclass living in the shadows to do the dirty work. In Singapore, for example, they seem to “enlist” Filipinos, Malays and Indians, while here in the US we seem to have found a much “messier” system of “tolerating” illegal migrants from Mexico (now El Salvador, Honduras…), instead. I guess our “solution” lets us sleep better at night knowing that there are no (official) “second-class” citizens here in America, even though of course there are and there will always have to be. Ironically, in America the members of that second-class often enjoy benefits that a regular American could only dream of, and that’s the part that makes our “system” so different (and very offensive to many who pay taxes). I only mention this here because I am witnessing that the medical needs of the aging Boomers seems to be creating a influx of nursing help form places like the Philippines, and that’s starting to remind me of what I saw in Singapore and elsewhere. The difference though is that I believe that these nurses aren’t paid much differently to “American” nurses and aren’t denied any rights…things that will probably make that system unsustainable in the long run in my opinion. It’s a sucky thing to say, but traveling the world has demonstrated to me that for the “underclass” math to pencil, that shadow population pretty much does need to exist on a separate economic/civic plane. Since we are probably never going to (formally) do anything like that, I expect problems to materialize pretty soon. Robots to the rescue?
Such as? What benefits exactly are illegal immigrants doing any of the 3D (Dirty, Dangerous, Demeaning) jobs getting that the “legitimate” Americans “could only dream of”?
Come to Los Angeles, they are eligible for so much free healthcare and everything else, it’ll make your head spin.
Again, what benefits are they getting that “legitimate” Americans “could only dream of”?
Because “Medi-Cal” is not restricted to illegals. It is a program accessible by all low-income California residents. And they do have to pay into the system. I am not aware of any “freebies” that are being given out to illegals that regular Americans don’t have access to, but I look forward to being educated in the matter.
So I am still waiting to learn about this “gravy train” for illegals that you speak of.
Didn’t you hear him? Sooooooo MUCH! It’s unbelievable! He can FEEL it!
We exported everything else in the name of capitalism?
The only thing that isn’t shrinking are Services and healthcare (and hair dressers) are some of the most inelastic and hard to export.
Hard labor that can be shipped out, will be. That’s how economics works. And tariffs have hurt the USA manufacturing because raw materials were hit, making even exports more expensive.
Not sure what happens next. We are very dependent on efficient trade.
The US “exported” mostly the production of low-margin, low-value goods, while production shifted to high-value, high-margin goods. The USA has never produced as many semi-conductors, fiber optics, aerospace components & aircraft, high end medical equipment, composite materials, batteries, heavy engines, high precision industrial machines, etc…as it does now.
The idea that having millions of Americans employed at US factories making low value items such as nail trimmers and ironing boards is a desirable thing shows a clear misunderstanding of economics.
Division of labor and leveraging comparative advantages across countries is a good thing.
Paraphrasing anothers quote
Nothing in DC happens by accident
Seemed accurate then
Seems Accurate now