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Where Jobs Are Growing — and Where They're Disappearing
Two consecutive months of hiring gains sound like good news. But a closer look reveals troubling trends underneath.
The U.S. economy added 115,000 nonfarm payroll jobs in April, the second straight month of gains — something that hasn't happened in a full year, per the Bureau of Labor Statistics.
On the surface, the labor market looks surprisingly sturdy given ongoing trade tensions, global conflicts, and mounting anxiety over AI-driven displacement. But Cory Stahle, a senior economist at Indeed, cautions that the headline numbers obscure a more fragile reality.
People are taking longer to find work after losing a job, he notes. More workers are dropping out of the job search entirely. And the sector driving most of the growth — health care — may be propping up numbers that would otherwise look far worse.
Health Care Is Carrying the Load
April's biggest hiring came from health care (37,000 jobs) and transportation and warehousing (30,000). On the losing end: federal government, finance, and information.
Health care hiring reflects a structural reality — an aging population needs medical services regardless of economic conditions. But Stahle warns against reading too much into that strength. Strip health care out of the equation, and the broader economy has actually shed 367,000 jobs since April 2025. According to Challenger, Gray & Christmas, employers announced over 83,000 job cuts in April alone — the third-highest monthly total since the Great Recession ended.
There's also a longer-term risk: immigration crackdowns could eventually limit the health care industry's ability to keep hiring, given how heavily the sector relies on immigrant workers.
Where Jobs Are Disappearing
Information, finance, manufacturing, and the federal government all shed jobs in April. Federal employment has fallen by 348,000 since its October 2024 peak. Since January, employers have announced nearly 301,000 total cuts, with tech companies leading the way — largely redirecting budgets toward AI.
Stahle pushes back on the idea that AI is simply eliminating jobs outright. More often, he says, companies are shifting resources — cutting costs in one area to fund AI investment in another. It's reallocation, not replacement, in many cases.
Rough Going for New Graduates
Recent college graduates are bearing a disproportionate share of the pain. White-collar hiring outside health care has pulled back sharply, leaving many new entrants struggling to break in. The unemployment rate for graduates aged 22–27 currently sits at 5.6%, well above the national rate of 4.3% — a historically unusual gap.
For job seekers of any age, Stahle's advice is to zoom out. "Think in decades, not years," he says. Markets move in cycles, and flexibility — including openness to switching industries — will matter more than any single moment in the hiring landscape.