As epidemiological studies have shown that conditions during gestation and early childhood affect adult health outcomes, we examine the effect of local labor market conditions in the year of birth on cognitive development in childhood. To address the endogeneity of labor market conditions, we construct gender-specific predicted employment growth rates at the state level by interacting an industrys share in a states employment with the industrys national growth rate. We find that an increase in employment opportunities for men leads to an improvement in childrens cognitive achievement as measured by reading and math test scores. Additionally, our estimates show a positive and significant effect of malespecific employment growth on childrens Peabody Picture Vocabulary Test scores and in home environment in the year of birth. We find an insignificant positive effect of buoyancy in females employment opportunities on said test scores.