Healthcare execs talk job growth and labor challenges

Healthcare is doing the heavy lifting for the US jobs market.

Data from the Bureau of Labor Statistics (BLS) showed a majority of jobs (63%) added to the economy in January were from the healthcare industry. Overall, healthcare added 82,000 jobs, with the majority in ambulatory health, hospitals, and nursing and residential care facilities.

However, labor strikes in February—such as in New York City where 15,000 nurses from three health systems went on strike—caused healthcare to lose 28,000 jobs that month, according to the BLS.

Amid the rapid movement in healthcare employment, Healthcare Brew asked leaders from around the industry to weigh in on the causes of increased job demand and the challenges facing the workforce.

Hospitals

Ben Teicher, associate director of media relations at the trade group the American Hospital Association, said that direct patient care roles like nursing are in highest demand at the moment.

One reason there are so many jobs being added in healthcare is an increase in retirements, likely those that were put off during the pandemic, he said. As of 2024, 20% of the physician workforce was 65 or older and 22% were between 55 and 64, according to data from the trade group the Association of American Medical Colleges.

“Hospitals face multiple challenges when hiring, including availability in their local community, connections with training programs for clinical workforce, and the financial challenges of competing in what may be a tight labor market,” Teicher said.

Nursing

Jennifer Mensik Kennedy, president of the trade group the American Nurses Association, told us the significant increase in jobs is a positive sign “because it reflects sustained demand for healthcare services and the essential role the industry plays in the broader economy.”

However, it also “underscores long-standing workforce shortages and pressures on providers to recruit and retain talent in an increasingly competitive labor market,” she added.

The aging population is a major driver of job growth in healthcare, according to Kennedy. By 2030, 20% of the US population will be 65 or older, the Census Bureau projects.

Other drivers include higher patient acuity and staffing turnover, Kennedy added.

In addition, a shortage of teaching faculty at nursing schools is worsening the nurse shortage, she said. In 2024, schools turned away more than 80,000 qualified applicants, primarily because there were too few faculty, according to data from trade group the American Association of Colleges of Nursing.

Long-term care

Clifton Porter, president and CEO of the American Health Care Association and National Center for Assisted Living, a trade group that represents long-term care facilities, told us nurses and nurse aides are “always in high demand.”

“They are the backbone of long-term care,” Porter said.

The January jobs report was “an encouraging sign that job seekers are flocking to important roles in administering and coordinating quality care for others,” he added. However, he noted February’s slower job growth and said nursing homes are still rebuilding from the pandemic.

Recruiting can be hard for long-term care facilities, as they compete with hospitals and other facilities that often are able to offer higher salaries and more benefits, Porter added.

“If facilities cannot find enough qualified caregivers, they must limit the number of residents they can accept,” he said. “Continuing to develop the caregiver pipeline and encouraging nurses to build a career in long-term care is crucial for us to ensure seniors have reliable access to care.”