KFF Health News September 30, 2025
Phillip Reese

The health care sector is a bright spot in the economy this year, driving nearly half of the nation’s employment gains, but economists and experts say immigration crackdowns and looming Medicaid cuts pose a threat to future job growth.

Employers added 487,000 jobs from January to August, according to the latest nonfarm payroll data from the Bureau of Labor Statistics. The health care sector accounted for 48% of that lackluster growth, expanding by about 232,000 jobs, even though the sector employs only about 11% of workers.

“On the labor side, health care growth is driving the economy,” said Stanford economics professor Neale Mahoney.

Economists say President Donald Trump’s immigration crackdown and cuts to public insurance programs threaten to dampen that...

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