Utilities and Healthcare Set to Dominate U.S. Hiring as AI Fuels Demand
Source: Fortune. Casualplayhub News adds summary, context, and editorial framing while linking back to the original report.
The U.S. labor market is entering a decade of tempered overall growth, but a select group of industries is poised to expand at a remarkable pace. According to the Bureau of Labor Statistics, total employment will rise by just 5.9 million positions to 176.2 million from 2025 to 2035, reflecting a modest 3.5% increase—a sharp slowdown from the 10.9% growth seen in the previous decade. Within this subdued landscape, three sectors stand out: utilities, healthcare, and professional services.
The utility industry is expected to record the fastest employment growth at 9.8%, driven almost entirely by the surging demand for electricity from data centers that power artificial intelligence. The BLS report notes that nearly all job gains in this sector will come from electric power generation, transmission, and distribution. Subcategories like solar electric power generation are projected to leap by 153%, while wind electric power generation will climb 62%. Although the absolute number of new jobs—58,800—is modest compared to other sectors, the growth rate underscores the transformative impact of AI on energy infrastructure.
Healthcare and social assistance will be the second-fastest growing sector, with a 9.5% expansion that translates into 2.2 million new jobs. This sector alone will account for 37% of all employment added through 2035, making it the dominant force in job creation. The BLS attributes this surge to an aging population and the increasing prevalence of chronic conditions such as heart disease, cancer, and diabetes. Within healthcare, nurse practitioners are expected to see a 41% increase in employment, while medical and health services managers will grow by 24%. These roles reflect the shift toward specialized, technology-enhanced care.
Contrary to fears that AI will decimate tech jobs, the professional, scientific, and technical services industry is projected to be the third-fastest growing sector, up 8.6%, and will add the second-largest number of positions—926,700. As businesses integrate AI tools to improve operations and decision-making, demand for data scientists is expected to surge 34.6%, and computer and information research scientists will see a 21.8% increase. These projections offer a measure of reassurance for office workers, particularly after prominent AI leaders had earlier warned of a looming jobs apocalypse. Notably, OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei have since tempered their forecasts, even as their companies prepare for blockbuster IPOs.
However, the BLS report also highlights where AI will suppress employment. The office and administrative support sector is set to lose 752,100 jobs, a 4% decline—the largest drop of any major occupational group. Sales and related occupations will fall by 1.4% as e-commerce expands and AI tools become embedded in business processes. The agency explains that while AI drives demand for certain roles, the productivity gains from automation will dampen hiring in others. For instance, generative AI software, capable of automating repetitive tasks and accelerating workflows, may limit job opportunities in arts, design, entertainment, sports, and media.
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Article commentary
The Bureau of Labor Statistics' latest projections paint a complex picture of the U.S. labor market over the next decade. On the surface, the overall growth rate of 3.5% signals a deceleration, but the sectoral variations reveal deeper structural shifts that merit close attention. The standout story is healthcare, which will generate over a third of all new jobs. This is not surprising given the aging Baby Boomer generation and the rising burden of chronic diseases. Yet the scale of the demand—2.2 million positions—underscores a persistent need for both skilled professionals and support staff, raising questions about whether the current pipeline of nurses, therapists, and managers can keep pace. Policymakers and educators must address training and retention to avoid critical shortages. The utility sector's rapid growth, though small in absolute numbers, is emblematic of the AI revolution's tangible impact on infrastructure. The 153% surge in solar power jobs and 62% in wind power reflect a dual push: the need for clean energy and the insatiable electricity demands of data centers. This trend could accelerate the transition to renewable energy, but it also highlights the tension between technological progress and environmental goals. Investors and utility companies will need to navigate regulatory hurdles and grid modernization challenges to sustain this momentum. Perhaps the most intriguing finding is the resilience of tech-related employment. Despite widespread fears that AI would eliminate programming and analytical roles, the projections show robust growth for data scientists and computer researchers. This suggests that AI is more of a complement than a substitute for high-skilled workers, at least in the near term. The walk-back of apocalyptic predictions by AI leaders like Sam Altman and Dario Amodei reinforces this view, though their motivations may be partly tied to corporate positioning ahead of IPOs. Still, the decline in office administration and sales jobs—over 750,000 lost—serves as a stark reminder that automation will hollow out middle-skill roles. The challenge for society is to manage this transition without exacerbating inequality. Overall, the BLS data offers a roadmap for workers, businesses, and governments. The next decade will reward adaptability, with opportunities concentrated in healthcare, energy, and high-tech services. At the same time, the displacement of administrative and sales workers demands proactive retraining programs and social safety nets. The AI revolution is not a single wave but a series of ripples that will reshape the labor market in uneven ways. Wise policy and continuous learning will be the keys to ensuring that the benefits of these changes are broadly shared.