The labor market's soft landing 'is at risk,' economist warns. Here's where jobs are still expanding.

• The Bureau of Labor Statistics reported on Friday that nonfarm payrolls grew by only 114,000 in July, which is lower than the 179,000 increase recorded in June.
• The unemployment rate rose to 4.3%, marking the highest level since October 2021, according to the agency.
• Some sectors are still hiring if you're searching for employment. Here are the places to begin your job search.

For a while now, the job market has been viewed negatively by job seekers, and this attitude is understandable.

Indeed Hiring Lab's Economic Research Director for North America, Nick Bunker, stated on Friday that the soft landing in the U.S. labor market is at risk.

Bunker stated that red flags have replaced yellow flags in the labor market data over the past few months.

Although some job sectors, such as information services, lost 20,000 jobs on Friday, other sectors may still have "Help Wanted" signs on their doors.

Experts suggest that if you're currently facing a competitive job market, these are the sectors that are currently hiring and how you can transfer your skills to switch to a different field.

A 'warning sign' from entry-level workers

The latest Bureau of Labor Statistics report shows that the U.S. job growth slowed more than anticipated, resulting in an increase in the unemployment rate.

The Bureau of Labor Statistics reported on Friday that nonfarm payrolls grew by only 114,000 in July, a decrease from 179,000 in June. Additionally, the unemployment rate rose to 4.3%, its highest level since October 2021.

The increase in "job loser unemployment" among temporarily laid off workers was a significant factor in July's unemployment rate, according to Bunker. This can occur in the manufacturing sector.

"Bunker stated that although they are currently unemployed, their connection to their previous employer is not completely severed, and their chances of finding a job in the next six months are higher than other unemployed individuals."

Young workers under the age of 24 are facing high competition and contributing to the jobless rate, according to Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, a liberal think tank in New York City.

These sectors are still hiring

Government, health care, and construction jobs have been the only constants in the labor market over the past 18 months, according to Julia Pollak, chief economist at ZipRecruiter.

According to Bunker, a portion of the private sector is contributing to job creation.

He stated that the majority of sectors are not currently creating jobs.

According to the BLS, the sectors with the most job growth are health care and social assistance, construction, leisure and hospitality, government, transportation and warehousing, wholesale trade, retail trade, and manufacturing, with 64,000, 25,000, 23,000, 17,000, 14,000, 4,000, 4,000, and 1,000 openings respectively.

Some fields 'see insatiable demand from employers'

Cyclical market fluctuations can make it challenging to optimize the job search in a growing sector, economists noted.

If I were to make a career pivot, "health care does make sense," Bunker said.

Pollak said that in some cases, going back to school might be necessary.

Nursing jobs are in high demand across all levels, including registered nurses and nursing assistants, she stated.

Next year, you may receive a smaller pay raise due to the emergence of 'NEETS' and 'new unemployables.'

She mentioned that some fields are experiencing a high demand, particularly those with an aging workforce and those unlikely to be impacted by AI automation, Pollak stated. Additionally, she emphasized the importance of training in skilled trades.

The skilled trades, such as electricians and heating, ventilation, and air conditioning technicians, are experiencing insatiable demand from employers and rising wages, according to her.

To pivot, assess 'transferrable skills'

Workers may struggle to find job opportunities in their preferred industries due to the weakening labor market, according to Bustamante.

He suggested exploring other professions and sectors that might share similarities with the one they were searching for as a potential starting point.

Bustamante suggested that, while it may be challenging to find an opportunity at a start-up, exploring the medical field or government service, which is currently experiencing strong hiring, could be beneficial.

Bustamante emphasized the importance of not just examining industries, but "examining occupations and where those occupations or opportunities are truly present at the moment."

Pollak concurred: "Examine areas where you possess transferable abilities."

To improve your competitiveness, customize your resume, search for job openings, submit your application immediately, and let AI assist you in resume tailoring, interview preparation, and role discovery, she advised.