Kansas City’s economy showed surprising strength in 2026, adding an estimated 12,800 jobs – nearly three times the number created in 2025. The data come from the Mid‑America Regional Council’s (MARC) annual economic forecast, presented by Frank Lenk, director of MARC’s office of economic research.
Broad‑based gains across key sectors
Healthcare remains the region’s largest employer with about 165,800 jobs as of August 2026, followed by government (including public‑school staff) at roughly 148,800 jobs and retail at 112,400 jobs. The next‑largest sectors are restaurants and hotels, professional‑technical services, and manufacturing.
Workers in Kansas City are six times more likely to be employed in a service‑producing industry than in a goods‑producing one. Still, the goods‑producing side is driving much of the recent job growth. Manufacturing (about 91,300 jobs) and construction (about 69,200 jobs) are the two largest goods‑producing fields.
Healthcare and construction lead the surge
Between August 2022 and August 2026, healthcare added 21,600 jobs, while construction contributed roughly 10,600 jobs. Together, these two sectors accounted for more than half of all new jobs in the region since 2022.
“When we look at 2026, this is the kind of distribution of growth you want to see,” Lenk said, noting the broad‑based nature of the expansion. He added that a diversified economy helps cushion the region if any single industry slows.
2027 outlook: modest slowdown, still ahead of the nation
MARC forecasts Kansas City will add about 10,700 jobs in 2027 – a slight dip from 2026 but still a marked improvement over the job losses recorded in 2025. The forecast expects healthcare to add roughly 5,700 jobs and construction about 3,900 jobs, together representing about nine‑tenths of the projected new jobs.
Lenk cautioned that reliance on construction could pose a risk if the sector experiences a bubble, but he emphasized that the continued strength of healthcare and other sectors will keep the local economy on an upward trajectory.
Comparative performance versus the nation
From August 2022 to August 2026, Kansas City’s employment grew 5.1%, outpacing the national increase of 3.7% according to the Bureau of Labor Statistics. Goods‑producing jobs in the region grew 9.4 percentage points faster than their national counterparts, while service‑sector growth matched the national pace.
Construction jobs grew 11.3 percentage points faster than the national rate, driven by large projects such as data centers, warehouses, and multifamily housing. Manufacturing also outperformed, gaining 7.8 points above the national average.
Workforce challenges and long‑term outlook
Despite the job gains, Kansas City’s labor force shrank by about 12,300 workers between August 2025 and August 2026, largely due to an aging population. Baby boomers are retiring faster than younger workers are entering the labor market. In 2001, roughly 26% of the region’s working‑age residents were 55 or older; projections for 2050 put that share at about 43%.
Lenk highlighted that a declining workforce can limit job growth, noting that “you can grow the output, but you can’t grow jobs” without enough workers. He pointed to lower fertility rates (the U.S. rate has fallen to 1.6 births per woman) and tighter immigration policies as additional factors reducing the pool of potential workers.
Policy implications
To sustain its competitive edge, the region will need policies that attract and retain workers, support families, and encourage immigration that fills labor gaps. Lenk emphasized that “regions grow by serving a larger economy,” urging local leaders to focus on sectors that export goods and services beyond the metropolitan area.
Overall, Kansas City’s job market remains a bright spot in the national economy, with strong performance in both healthcare and construction and a diversified base that positions the city for continued prosperity.
Original reporting: The Beacon (Kansas City) — read the source article.
