Healthcare leads U.S. job growth as tech sector sheds workers
WASHINGTON, D.C., UNITED STATES — The healthcare sector continues to lead U.S. job growth in 2025, adding 44,000 positions in January alone, according to the Bureau of Labor Statistics (BLS).
Hospitals (+14,000), nursing and residential care facilities (+13,000), and home health care services (+11,000) were the primary contributors to this surge. While the pace of job creation slowed slightly compared to 2024’s monthly average of 57,000 new roles, healthcare remains a resilient force in the labor market.
This growth is driven by increasing demand for healthcare services due to an aging population and the sector’s relative insulation from automation risks. Healthcare accounted for six of the top 25 jobs in Indeed’s 2025 rankings, underscoring its prominence as a stable employment sector.
IT sector struggles amid AI disruption
In stark contrast, the IT industry is grappling with rising unemployment. The sector’s jobless rate jumped to 5.7% in January 2025, up from 3.9% in December 2024. The number of unemployed IT professionals rose sharply from 98,000 to 152,000 during this period.
Experts attribute this trend to the rapid adoption of artificial intelligence (AI), which has automated many routine tasks.
Victor Janulaitis, CEO of Janco Associates, told The Wall Street Journal that companies are leveraging AI to cut costs by replacing clerical and administrative roles.
“Jobs are being eliminated within the IT function which are routine and mundane, such as reporting, clerical administration,” Janulaitis stated. “As they start looking at AI, they’re also looking at reducing the number of programmers, systems designers, hoping that AI is going to be able to provide them some value and have a good rate of return.”
Over the past two years, the IT job market has contracted by more than 171,000 positions, with no growth anticipated in 2025.
Digital transformation reshapes healthcare workforce
While healthcare employment thrives overall, the sector is not immune to IT-related challenges. Some health systems have reduced their IT staff due to cost-cutting measures and operational efficiencies enabled by AI.
For example, Highmark’s enGen subsidiary laid off nearly 100 employees last year while redirecting resources toward high-demand roles like nursing.
Simultaneously, healthcare organizations face a growing shortage of skilled tech workers for critical roles such as cybersecurity and data analytics. This gap poses risks as hospitals increasingly rely on AI-driven tools for patient care and cybersecurity defense.
Bridging technology and healthcare skills
The contrast between healthcare’s strong job growth and IT’s challenges reflects larger changes in the labor market. As AI reshapes industries, healthcare employers must strategically integrate technology while addressing workforce shortages.
By investing in upskilling programs and fostering collaboration between human expertise and AI systems, the healthcare sector can sustain its momentum while navigating technological disruptions.
