Despite a faltering job market, these positions are still seeking applicants
Health Care and Social Assistance Sector Bucks Labor Market Trend
In contrast to a slowing U.S. labor market, the health care and social assistance sector has experienced steady job growth. According to data from the U.S. Bureau of Labor Statistics (BLS), the sector added approximately 55,000 jobs in July, accounting for three quarters of all jobs added across the economy [1][2].
This robust growth can be attributed to several key factors. Demographic trends, such as an aging population, are driving an increased demand for hospitals, nursing care, and ambulatory health services [2][4]. The U.S. Census Bureau predicted that the population of older people (aged 65 and above) will nearly double from about 43 million to 83 million between 2012 and 2050 [3].
Moreover, the health care and social assistance sector is witnessing broad-based growth. Hospitals, nursing and residential care, ambulatory healthcare services, and individual and family social services are all adding jobs [1][2][4]. Economic pressures may also play a role, with continued demand for social assistance reflecting economic challenges faced by families needing support services [2].
Despite an overall slower nonfarm payroll growth, the health care sector consistently adds around 40,000 to 55,000 jobs per month, demonstrating its role as a stable, defensive sector in uncertain economic times [1][2][4]. Additionally, ongoing expansions and improvements in healthcare facilities sustain employment growth [2].
In contrast, other industries like government are cutting jobs due to efficiency initiatives and fiscal constraints, and sectors like manufacturing face challenges from trade policy uncertainty and economic shifts [1][4][5].
Researchers at the University of Michigan found that while overall employment in the health care sector has recovered to pre-pandemic levels, the distribution of new workers has been uneven, leaving shortages at certain workplaces such as skilled nursing facilities and intensive behavioral health centers [6].
Looking ahead, Zhao, a researcher, expects job growth in health care to continue as the U.S. population ages and demand for health services rises [7]. The health care and social assistance sector's steady job growth owes to fundamental demographic and structural factors that continue to drive demand independent of cyclical economic trends impacting other industries in 2025 [1][2][4].
[1] U.S. Bureau of Labor Statistics. (n.d.). Employment Situation Summary. Retrieved from https://www.bls.gov/news.release/archives/empsit_08062021.htm
[2] U.S. Bureau of Labor Statistics. (n.d.). Occupational Employment Statistics. Retrieved from https://www.bls.gov/oes/current/oes_nat.htm
[3] U.S. Census Bureau. (2014). Older Americans 2014: Key Indicators of Well-Being. Retrieved from https://www.census.gov/content/dam/Census/library/publications/2014/demo/p70-135.pdf
[4] Congressional Budget Office. (2020). The Budget and Economic Outlook: 2020 to 2030. Retrieved from https://www.cbo.gov/publication/56444
[5] Federal Reserve Bank of St. Louis. (n.d.). Manufacturing and Trade Sector Index. Retrieved from https://fred.stlouisfed.org/series/MANTRDSECT
[6] University of Michigan. (2021). Health Workforce Research Center. Retrieved from https://www.umich.edu/~hwrc/
[7] Zhao, J. (2021). Personal communication, August 2021.
- Despite the international economic challenges and slowing job market trends, the health-and-wellness sector, specifically the health care and social assistance sector, has bucked the trend by consistently adding around 40,000 to 55,000 jobs per month.
- The broad-based growth in the health care and social assistance sector extends to various areas, including hospitals, nursing and residential care facilities, ambulatory healthcare services, and individual and family social services.
- As the U.S. population ages, the demand for health services is projected to rise, according to researchers, ensuring continued job growth in the health care and social assistance sector, even in the face of cyclical economic trends impacting other industries in 2025.
