Rising interest rates usually bring a chill to the job market. The logic is simple: borrowing costs go up, businesses scale back, and hiring slows down. But not all industries follow that script. In fact, several sectors including construction, defense, tech, and material handling are actively growing their workforces.
According to ADP’s July report, private payrolls jumped by 104,000, a strong rebound from the previous month’s revised decline of 23,000. This is the fastest pace of job creation since March, signaling surprising resilience in certain sectors. Even more striking? Wage growth remained stable, with job changers seeing a 7% average bump and those staying in their roles getting a 4.4% increase.
So what’s driving this counterintuitive trend?
Infrastructure Spending Is Building Momentum
One major factor is public infrastructure investment. With legislation like the Infrastructure Investment and Jobs Act and the CHIPS and Science Act, billions of dollars are flowing into large-scale construction, clean energy, semiconductor manufacturing, and material handling automation projects.
These initiatives are putting people to work. Jobs in construction, civil engineering, and related material handling roles are seeing steady demand. Unlike speculative tech or interest rate-sensitive real estate development, infrastructure projects are funded and locked in, often with long lead times and bipartisan support. That means even with higher interest rates, these projects move forward, hiring workers along the way.
National Security and Defense Remain Untouchable
Another key driver is defense and aerospace. No matter the economic cycle, countries don’t dial back on security. In fact, global tensions often cause an uptick in government contracts for defense manufacturers, cybersecurity firms, and logistics companies tied to military supply chains.
These firms, many clustered around hubs like Virginia, California, and Texas, continue to recruit engineers, analysts, technicians, and supply chain professionals. Because much of their funding is federal and less susceptible to interest rate swings, defense remains one of the most insulated industries in times of tightening monetary policy.
Logistics and Skilled Trades Prove Essential
Industries tied to logistics like warehousing, freight, and material handling have proven they’re essential, not optional. Even as consumers shift spending patterns, supply chain roles are still vital. These companies are critical since they keep food on shelves and products in homes. They also tend to rely heavily on skilled trades, an area where labor shortages have been a persistent issue for years.
Whether it’s forklift technicians, warehouse supervisors, or field service operators, material handling firms are still hiring, often out of necessity. In fact, because so much of this labor is manual and local, it’s less vulnerable to automation or outsourcing.
Some Sectors Are Built to Last
Yes, interest rates are high. But no, that doesn’t mean the labor market is collapsing. Some sectors are built to weather these economic shifts, either through public funding, strategic importance, or because they offer services the economy simply can’t do without.
As July’s job numbers show, companies in these resilient industries are still hiring, still growing, and still offering competitive wages. For job seekers and employers alike, it’s a reminder that in a high-rate environment, opportunity doesn’t disappear, it just moves.
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