Without healthcare, the US would have nearly 400,000 fewer jobs than it did a year ago

The U.S. labour market is experiencing an unusual dynamic: while overall job growth is slowing, healthcare continues to be a remarkably robust engine of employment. This trend, surprisingly resilient even amidst broader economic headwinds, signals a fundamental shift in the composition of the American workforce.

Healthcare’s Dominance in the labour Market

Healthcare and social assistance now account for approximately 15% of all jobs in the United States, nearly double the share it held in 1990. Over the past 35 years, the industry has steadily expanded its reach, establishing itself as the dominant force in the labour market. This growth has been particularly pronounced since the onset of the Covid-19 pandemic.

Did You Know? The number of home healthcare jobs has increased by roughly 20% since January 2020.

While the pandemic initially caused temporary job losses within the healthcare sector due to clinic closures and postponed elective procedures, hiring quickly rebounded. The resurgence has been especially strong in “mid-level” positions, such as physician assistants and nurse practitioners, according to Neale Mahoney, an economics professor at Stanford University.

Demographic and Economic Drivers

Several factors are fueling this expansion. More than one in six Americans are now 65 or older, a demographic that consistently demands a significant amount of medical care. The Brookings Institution estimates that the number of Americans over 80 will double by 2045 as the first baby boomers reach that age bracket.

Beyond aging demographics, rising wealth, particularly among baby boomers, is also contributing to increased healthcare spending. This affluence translates into greater demand for not only essential medical services but also for elective procedures like cosmetic surgery and advanced dental care. As Ullrich noted, “A lot of healthcare spending is directly connected to wealth.”

Expert Insight: The sustained growth in healthcare employment, even as other sectors face challenges, highlights a fundamental shift in economic priorities driven by demographic changes and evolving consumer spending patterns.

Shifting Career Paths and Wage Growth

The strong demand for healthcare professionals is attracting workers from other industries. Brandon Rees, a former software developer, transitioned to a critical care nursing position in Fort Wayne, Indiana, earning $34 ($56) per hour and expressing greater job satisfaction. Similarly, Bryan Samuelson, previously a software test engineer, now earns more than double his former salary as a registered nurse in Portland, Oregon, citing the stability and versatility of the healthcare field.

This heightened demand is also driving up wages. Healthcare wages grew by 1.3% in 2025, after adjusting for inflation, exceeding the overall job market’s growth rate of 0.5%, according to analysis by Mahoney and Caleb Brobst at Stanford. Job postings for roles like personal care aides, physicians, and physical therapists are outpacing those in most other industries, and nurses continue to receive substantial signing bonuses.

Potential Challenges and Future Outlook

Despite the current strength, the long-term trajectory of healthcare employment remains uncertain. The Trump Administration’s immigration policies could restrict the supply of foreign-born healthcare workers, potentially exacerbating labour shortages. Recent nurses’ strikes also point to the need for improved working conditions and staffing levels.

potential cuts to Medicaid and the Affordable Care Act could impact demand for healthcare services, particularly in rural areas. A shift towards greater reliance on emergency rooms, if insurance coverage lapses, could also alter the landscape of care delivery. However, economists generally anticipate continued demand for healthcare workers, even if other sectors experience slowdowns. Sam Kuhn, an economist at Appcast, stated, “We’re likely to see some acute labour shortages in healthcare…But is demand for healthcare workers going to continue? I would say yes.”

Frequently Asked Questions

What percentage of all jobs in the U.S. Are now in healthcare and social assistance?

Healthcare and social assistance now makes up about 15% of all jobs in the United States.

How has the demand for home healthcare jobs changed since January 2020?

The number of home healthcare jobs is up by roughly 20% since January 2020.

What is driving the growth in healthcare wages?

Healthcare wages grew by 1.3% in 2025, after adjusting for inflation, due to high demand and a constrained supply of workers.

As the U.S. Population continues to age and wealth distribution evolves, how might the healthcare industry adapt to meet changing demands and maintain a sustainable workforce?