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Healthcare hiring and specialist construction roles tied to data-center builds were the clearest areas of growth in an otherwise soft September labor market. The Bureau of Labor Statistics reported the US added 29,000 payrolls and shows the healthcare sector contributed 16,700 of them. Construction added 11,000 jobs overall, led by nonresidential specialty trade contractors, which added 12,300 positions linked to data-center work. Reporting by Juliana Kaplan and Madison Hoff at Business Insider identified data-center hiring surges and persistent demographic demand for care as the main drivers behind those gains.
So the demand is there, but the execution on that demand is limited by the federal funding environment right now,
Nicole Bachaud, ZipRecruiter economist
Key takeaways
- The Bureau of Labor Statistics showed total payrolls rose by 29,000 in September, with healthcare contributing 16,700 of those jobs.
- The nonresidential specialty trade contractors subcategory supplied 12,300 jobs in September, while overall construction recorded an 11,000-job increase.
- Indeed reported data-center-related job postings have surged by almost 130% since June 2024.
- The government sector lost 17,000 jobs in September and the information sector fell from a 2022 peak of 3.1 million employed to 2.7 million.
Table of contents
How healthcare anchored the small September gain
The Bureau of Labor Statistics' monthly payroll snapshot put the economy's net gain at 29,000 jobs in September, with the healthcare sector a disproportionate contributor. Healthcare accounted for 16,700 of the new payrolls, roughly more than half of the month's total. That makes healthcare the single largest source of job additions in a month when many white-collar sectors shed workers.
Economists quoted in the reporting give two linked reasons for why health hiring persists even as it cools: long-term demand from an aging population, and constraints on the ability to staff up rapidly. Nicole Bachaud, a ZipRecruiter economist, pointed to funding pressures that can limit employers' ability to convert demand into hires. The reporting frames healthcare hiring as catch-up to structural demand rather than a cyclical boom.
Data centers are propping up construction—and risks follow
Construction posted an 11,000-job gain in September, but that headline hides where the activity actually sits: the increase was concentrated in nonresidential specialty trade contractors, which accounted for 12,300 of the new positions. Those workers—electricians and other craft roles employed on commercial projects—staff many of the new data centers. Indeed's job-posting data, as first reported by Business Insider, shows data-center-related listings up almost 130% since June 2024, which helps explain the strength in that slice of construction employment.
That concentration creates vulnerability. Guy Berger, senior fellow at the Burning Glass Institute and chief economist at Homebase, warned that if the data-center boom proves short-lived, the market could be left with many trained workers whose new skills are no longer in demand. In short, the current construction gains are real but tied to a specific, capital-intensive segment rather than broad-based residential or infrastructure demand.
Sectors that lost ground and what that means for the labor market
September's modest headline hides sectoral weakness: government payrolls fell by 17,000 and the information sector has contracted from its 2022 peak of 3.1 million employed to 2.7 million. Those declines show the unevenness beneath the aggregate number and underline why economists describe the market as 'dreary' despite isolated pockets of hiring.
The pattern—healthcare and data-center construction up, many white-collar and public roles down—matters for regional labor markets and retraining needs. Employers in areas with heavy data-center investment may continue to recruit electricians and technicians, while regions reliant on shrinking information-sector employers may see longer-term adjustment costs for displaced workers.
| Sector | September change | Context |
|---|---|---|
| Healthcare | +16,700 | Largest monthly contributor to payroll gains |
| Construction (total) | +11,000 | Led by nonresidential specialty trade contractors |
| Nonresidential specialty trade contractors | +12,300 | Jobs tied to commercial projects including data centers |
| Government | -17,000 | Public payroll decline |
| Information | 3.1M (2022 peak) → 2.7M (last month) | Noted sector-level contraction since 2022 |
| Data-center postings (Indeed) | ~+130% since June 2024 | Surge in listings tied to data-center investment |
Case for and against sustained hiring in these pockets
The case for
- Persistent demographic demand: Aging populations will continue to raise baseline demand for healthcare services and staff, supporting long-run hiring in the sector.
- Capital spending on data centers: Large, ongoing data-center projects are creating near-term construction and technical roles, and Indeed's posting data shows strong employer demand for those positions.
The case against
- Federal funding constraints: ZipRecruiter economist Nicole Bachaud said funding shortfalls can limit employers' ability to turn demand into hires, which could keep healthcare growth muted.
- Concentration risk in construction: Guy Berger warned that if the data-center spending boom ends sooner than expected, many newly trained electricians and contractors could face weak local demand.
What to be careful about
- Healthcare hiring is constrained by federal and other funding limits that could prevent employers from expanding staff even as patient demand grows.
- Construction gains are concentrated in data-center projects, exposing local labor markets to a demand shock if those projects slow or cancel.
- Regional mismatches: hiring strength in data-center hubs may not translate into opportunities in areas losing information-sector jobs, raising retraining needs.
The bottom line
September's labor-market gains were narrow: healthcare and a construction subsector tied to data centers supplied most of the growth while public and information-sector payrolls fell. That mix reflects structural demand for care alongside a concentrated capital-investment cycle in data centers. The near-term picture is one of pockets of strength rather than broad recovery; whether those pockets widen depends on federal funding for health services and whether data-center investment sustains regional construction demand.
What to watch
- Watch the Bureau of Labor Statistics' next monthly payroll release for whether healthcare hiring rebounds; no date has been set.
- Watch congressional or federal action on healthcare funding, which could change employers' ability to hire at scale; no date has been set.
- Watch regional permitting and corporate announcements for new data-center builds to see if nonresidential construction demand persists; no date has been set.
Frequently asked questions
How many healthcare jobs were added in September?
The Bureau of Labor Statistics showed the healthcare sector added 16,700 jobs in September, which represented a majority of the month's 29,000 net payroll gain.
Why is construction employment up while other sectors lose jobs?
Construction rose by 11,000 jobs in September, driven in part by nonresidential specialty trade contractors, who added 12,300 jobs tied to commercial projects such as data centers, according to the reporting.
Are data centers a reliable long-term source of jobs?
Indeed's data cited in the reporting shows data-center-related postings up almost 130% since June 2024, which fuels current hiring; however, Guy Berger of the Burning Glass Institute warned that a shorter-than-expected boom could leave those gains vulnerable.
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