...for now and, likely, for the foreseeable future.

With this morning's jobs report, the BLS also released revised employment data for 2006...and guess what? Two things turn out to be true: First, health care is the biggest source of new jobs. Second, health care's share of the labor market is rising (see table and chart below)

Both of these facts will be consistent features of the labor market from now on. This is a big change, and reflects the combination of government funding (and borrowing!) for health care and the continued slow growth of other types of jobs.

In effect, we are borrowing from abroad to create healthcare jobs.

In the past, healthcare job growth would lag the rest of the economy when times turned good. For example, in the last expansion, healthcare's share of private employment actually peaked in 1993. This will not happen again.

I will be talking at the National Economists Club next Thursday in DC on the topic: “Will Our Children All Work In Hospitals and Doctors’ Offices?” I believe that my presentation will be available on their site afterwards.

Health Care is the Biggest Source of New Jobs
Change, thousands
Jan.2006-Jan. 2007
Health care and social assistance 388
Accommodations and food services 380
Professional and technical services 280
Local government 227
Administrative and waste services 191
Financial activities 167
Transportation and warehousing 116
Wholesale trade 107
Construction 100
Educational services 90
State government 66
Arts, entertainment, and recreation 60
Natural resources and mining 50
Management of companies and enterprises 38
Information 22
Other services 17
Utilities -1
Federal -11
Retail trade -28
Manufacturing -110
Total nonfarm 2,148
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