📈 U.S. Job Growth Dominated by Health, Government, and Services; Manufacturing Jobs Decline

Of the 782,000 non-farm jobs added in the first half of 2025, 69% were in health care & social assistance and government. An additional 21% came from leisure & hospitality, financial activities, and retail trade. In contrast, manufacturing employment declined by 10,000 jobs. The dominance of non-tradable service-sector employment—often tied to government spending or domestic consumption—raises concerns about the long-term implications for trade balances, public debt, and inflationary pressures.

Of the 1.81 million non-farm jobs added in the twelve months ending June 2025, 80% were in health care & social assistance, government, and leisure & hospitality. An additional 12% came from financial activities, transportation, and retail trade. In contrast, manufacturing employment declined by 89,000 jobs. The concentration of job growth in non-tradable, service-oriented sectors—many dependent on public funding or domestic consumption—raises concerns about long-term trade imbalances, rising public debt, and sustained inflationary pressures.