The U.S. economy continued its modest streak of job growth in August 2025, with a gain of 22,000 new jobs. This figure, though, is woefully inadequate, calling into question the broader economic comeback. Turning to the bullish side of the jobs report, despite the disappointing employment figures overall, the health care sector proved its mettle, contributing 31,000 jobs in that timespan. Meanwhile the unemployment rate remained unchanged at 4.3%. In the last month’s revisions, they’ve downgraded the estimate by a net 27,000 jobs down for June.
As mentioned above, health care has long been the one glaring bright spot in a labor market riddled with despair. Restaurant sector re-adding an average of 42,000 new jobs in each month. This trend is indicative of an increasing need for health services. Recent numbers paint a picture of robust job gains in all of the major health care sub-sectors. These are sectors such as ambulatory health care services, nursing and residential care facilities, and hospitals.
Strong Performance in Health Care Services
Employment in ambulatory health care services rose by 13,000 jobs just in August alone. This part of the system entails delivering ambulatory and outpatient specialty services. Of note is the increased focus on outpatient treatment and more preventive care options.
Further, nursing and residential care facilities reported an increase in employment of 9,000 jobs. The current increase draws attention to the chronic demand for long term care services as the U.S. population continues to age. Job growth was accelerated by hospitals, which added 9,000 workers. That’s a sign of robust, consistent demand for their services and the need to navigate the complex landscape of modern healthcare.
These numbers are a testament to how vital health care is in the labor market. As the sector develops and grows, it’s an absolutely necessary part of economic stability and prosperity.
Market Response and Sector ETFs
Health care is the one sector in which we are still seeing solid job gains. In consequence, the Health Care Select Sector SPDR Fund (XLV) skyrocketed 6.9% just over the last month. This ETF provides investors exposure to the fastest growing segments of the health care industry. Its relevance increases as health care employment continues to be one of the few sectors still adding jobs.
The fund invests 22.32% of its assets in hospitals, nursing, and residential care facilities. This signals its clear intent and priority towards supporting businesses that provide the most critical health services. Furthermore, XLV has a 30% focus on the pharmaceutical industry, which remains vital in developing treatments and managing public health challenges.
Still, investors have enjoyed plenty of cause for optimism in the biotech sector. That’s why XLV invests 17.1% of its holdings there. Biotech companies are known for their innovative approaches to health care solutions, making them an attractive option for investors seeking growth opportunities.
Broader Economic Context
While that’s positive news from the health care sector, employment trends overall tell a very different story. Manufacturing employment has lost 78,000 jobs in the last year, indicating troubles in this important industry. Yet even as industries deal with new economic realities and consumer preferences, uncertainty looms over the national job market.
Together with the U.S. economy’s shocking gain of just 22,000 jobs in August, these new numbers help fuel fears about economic momentum. While still a healthy absolute gain, against the performance of previous months, this number gives cause for concern as to future growth prospects. Unemployment holds at a high 4.3%. That shows that, even as jobs keep being added, they are not sufficient to significantly reduce unemployment or power robust economic expansion.