The structure of the American workforce has shifted dramatically in the past three decades, and the change is fueling debate over whether the U.S. economy is built on solid ground or increasingly propped up by government spending.
During an interview on Chicago’s Morning Answer, host Dan Proft and guest Jim Iuorio, host of The Futures Edge podcast and contributor to Wirepoints, discussed recent data showing how healthcare has become the largest employer in most states. In 1990, manufacturing led the employment landscape across much of the country. By 2024, that number had plummeted, with three-quarters of states now counting healthcare as the top sector.
“This is quite amazing,” Iuorio said. “Manufacturing was always going to decline somewhat as trade opened up, but it disappeared much faster than it should have. Regulation and currency manipulation, particularly by China, accelerated the shift and disrupted small-town America.”
Proft noted that because healthcare is heavily subsidized by government spending, its dominance as an employer highlights the growing influence of Washington on the economy. Iuorio agreed, pointing out that many positions classified as “private sector” are effectively government jobs when the industry’s largest customer is the state.
The discussion also touched on the national debt, which now exceeds $37 trillion. Iuorio argued that deficit spending and the expansion of government-dependent sectors have created what he called “something fake” about the economy. “We’re still America, we still have resources and innovation,” he said. “But there’s no question we’ve built a bloated government-worker base that keeps growing.”
Artificial intelligence was another point of concern. While the technology promises efficiency and productivity gains, Iuorio warned it could also accelerate job displacement, particularly in white-collar professions. “The ground is shifting faster than at any time in my career,” he said. “AI is already more deeply rooted than many realize, and that means fewer jobs in some sectors.”
Proft and Iuorio also examined financial markets, noting that the gap between corporate borrowing costs and government bond yields has narrowed to levels not seen since the late 1990s. Iuorio suggested that such complacency often precedes market corrections. “Anytime people assume the stock market only goes one direction, it’s time to get a little more cautious,” he said.
Looking ahead, Iuorio predicted the Federal Reserve is likely to cut interest rates this fall, but said market reaction will determine whether the move is viewed as a prudent step or an inflationary mistake.
Despite concerns about government dependency, artificial intelligence, and market risk, Iuorio struck a cautious but not apocalyptic tone. “There are fake elements in the economy, but we still have the ability to adapt,” he said.
Photo by Markus Spiske on Unsplash