Healthcare Buys All the Jobs; Federal Workers Left With Empty Handbags
KEY POINTS
- •The US added 584,000 jobs overall in 2025, with healthcare contributing 700,000 new roles across hospitals, nursing homes, and ambulatory services.
- •Federal employment plummeted by 274,000, the sharpest drop since WWII, triggered by deferred resignation offers and agency staff cuts.
- •Professional and business services shrank by 97,000 jobs, mostly from temporary help agencies, as sectors rebalanced head counts due to AI and uncertainty.
In 2025, the US job market was basically a pie where healthcare snagged the biggest slice—69% of all growth—which translates to 700,000 new jobs in hospitals, nursing homes, and ambulatory care. Meanwhile, federal workers saw the biggest employment nosedive since 1946 with 274,000 jobs vaporized thanks to Trump's infamous deferred resignation packages and aggressive Department of Education plus Small Business Administration cuts. Leisure and hospitality barely kept the party going with their usual revolving door action, while professional and business services lost 97,000 jobs, mostly from temp agencies hemorrhaging almost 100,000 positions. Chief economist Daniel Zhao’s words hit like a defibrillator: 'job market ended the year with a fizzle rather than a bang.' Young job seekers with any degree are caught in the employment limbo, wondering if switching from manufacturing to healthcare requires more than just a magic wand. Aaron Terrazas predicts 2026 might be less painful since the administration isn’t brand new—because nothing says hope like less chaos.
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Healthcare soaked up jobs like a sponge at a flood, while federal workers got ghosted on their own lifetime benefits. Guess the government’s version of 'right-sizing' is fat-shaming employees out of existence.
2025’s job market looked like a weird party where healthcare crashed in VIP, while federal workers got thrown into the street with a 'thanks, next!'
If you thought changing careers was just learning a new skill, try going from manufacturing to healthcare in 2025—it’s like swapping a unicycle for a rocket ship mid-air.
Source: Businessinsider | Published: 1/11/2026 | Author: Madison Hoff,Juliana Kaplan
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