Healthcare added 43% of last month’s new jobs, topping AI and tech in the U.S. economy. The BLS projects an 8.4% job gain for the sector through 2034, making it the fastest‑growing industry over the next decade.

Consumer spending drove GDP up 1.4% in Q4 2025, largely from hospital visits, outpatient care and nursing homes. Healthcare now accounts for 18% of GDP and is expected to hit over 20% by 2033.

The surge stems from an aging population and rising chronic disease. Baby boomers hold 83% of assets and could triple their economic contribution to $28.2 trillion by 2050, underscoring the sector’s fiscal weight.

High administrative overhead, hospital consolidation and premium drug prices inflate costs. While AI promises to boost productivity, it cannot offset the structural drivers of spending. Investors face a sector that fuels growth but also strains public finances.