The U.S. labor market is shifting. Government projections released on August 28, 2026, indicate that an aging population and higher rates of chronic conditions such as diabetes and heart disease will dominate hiring trends over the next decade. Healthcare and social assistance sectors are expected to add 2.2 million jobs between 2025 and 2035. This single industry represents 37% of all new U.S. positions forecasted by the Labor Department.
Growth in Technology and Energy Sectors
Artificial Intelligence is the primary engine behind shifts in other labor areas. The utilities sector is projected to grow by 9.8% by 2035, driven by the intense energy requirements of large-scale AI infrastructure. While the percentage growth is high, the sector is small, adding 58,800 total jobs. A larger impact is expected in professional, scientific, and technical services, where AI demand for developers, engineers, and consultants will likely create 927,000 new roles.
These projections highlight the divide between sectors gaining from automation and those losing ground. According to Breyon Williams, chief labor market economist at Groundwork Collaborative, the tech surge is balanced by significant contraction elsewhere. Administrative functions face a difficult outlook. The government anticipates that 752,000 office clerk, secretary, and customer service positions will vanish by 2035.
The Role of AI in Job Contraction
Automation technology is moving beyond manufacturing into white-collar and creative spaces. The Labor Department notes that the arts, design, entertainment, and media sectors are particularly susceptible to this shift. AI systems are beginning to perform tasks previously handled by humans, which naturally limits future hiring in these fields. Retail is also identified as an industry where automation will reduce headcount.
It is a mixed result for the broader economy. While high-tech and healthcare demand remain strong, the removal of 752,000 administrative roles represents a structural change in how businesses manage information. The era where basic office tasks provided stable, long-term employment appears to be closing. Companies are instead choosing to integrate software that manages communication and data entry without human intervention.
Broader Economic Implications
Federal government employment is also trending downward, with a projected 3.4% decline over the next ten years. This reflects a shift in fiscal priorities and the potential for increased efficiency in public sector operations. The combined weight of these shifts means the job market of 2035 will look quite different from the one that existed in 2025.
Predicting the next decade of employment is rarely precise, but the current data signals a clear move toward specialized technical labor and personal care services. Workers entering the market need to account for these trends. Skills tied to human-centric healthcare or AI development are currently favored by long-term labor patterns. Administrative and routine creative roles are losing their status as reliable career paths. The data serves as a guide for what industries are expanding and which are reaching their peak.