Overall employment grew just 0.8% in the 12 months through September
America’s key economic sectors, like logistics and manufacturing, aren’t creating jobs at a strong pace. Even booming investment in data centers and artificial intelligence hasn’t led to a surge in hiring.
Industries that usually fuel hiring are barely expanding, signaling weaker worker demand than the low unemployment rate suggests.
Companies increasingly expect AI to automate tasks, so they are slowing hiring in anticipation rather than need.
Overall employment grew just 0.8% in the 12 months through September, led mainly by healthcare and state and local government jobs.
Manufacturing employment dropped 0.7%, while temporary help jobs fell 3%, continuing a three-year decline. Transportation, warehousing, and wholesale trade are growing far slower than the economy.
A Bloomberg analysis found that healthcare, social assistance, and leisure and hospitality accounted for more than 100% of net job gains in 2025. Without them, hiring declined.
As companies prepare for AI advancements, the labor market faces a cautious hiring climate.