Bloomberg Surveillance · Friday, September 4, 2026
Analysis of recent labor data indicates that job creation is primarily concentrated in manufacturing and construction sectors, with strong demand for skilled trades. Conversely, service-oriented sectors like retail, hospitality, and healthcare are showing signs of softening. This divergence is partly attributed to the initial phases of AI implementation, which favors areas like data center construction while potentially automating easier entry-level roles.
“I mean, the data shows it's really manufacturing and construction. I mean, that's where the labor demand is coming from. It's all the service-oriented retail, hospitality, even healthcare, showing signs of softening here.”
“The Beige Book this time had a lot of color that gets right to this question. I think this is a place where getting at some of the anecdotes and what's behind the different industry patterns is helpful.”
“Like the Beige Book is full of examples of construction, skilled trades, lots of demand, not being able to keep up with the demand for workers in those areas. And then, but at the same time, some of these, again, entry-level things that can be automated more easily, that's where some of the first pressure points are showing in less demand.”