The industry has, for the most part, withstood the economic challenges that have plagued job growth in other sectors.
Healthcare employment remains a consistent engine of growth in the broader economy, even as signs point to a cooling labor market across other industries.
The healthcare sector added 39,200 jobs in June, accounting for more than a quarter of total gains across all industries last month, according to the latest report from the Bureau of Labor Statistics. That figure is slightly below the 12-month average of 43,000 and a steep decline from the 62,200 jobs added in May, but it reinforces the trend that healthcare continues to outpace many other sectors in hiring demand.
Persistent workforce needs across the continuum of care were reflected in hospitals, ambulatory care, and nursing and residential care facilities leading the way for growth in June.
Hospitals added 16,100 jobs while ambulatory healthcare services contributed 8,700 jobs. Within ambulatory care, physician offices accounted for 3,800 jobs and home healthcare services chipped in 2,800 jobs.
Nursing and residential care’s growth of 14,400 jobs was driven by skilled nursing care facilities delivering 6,800 jobs and continuing care retirement communities and assisted living facilities for the elderly supplying 5,500 jobs.
Across all industries, the U.S. added 147,000 jobs last month, in line with the monthly gain of 146,000 over the past year and a modest jump from the 139,000 added in May.
The unemployment rate, meanwhile, was at 4.1% in June, compared to 4.2% in May, and has remained between 4% and 4.2% since May 2024.
Though the overall job growth and unemployment rate show that the labor market is holding firm, increases in healthcare and state and local government education are covering up for downturn in other sectors.
Federal government, for example, lost 7,000 jobs last month and has seen employment fall by 69,000 since hitting a peak in January. Jobs also dwindled in professional and business services—a white-collar sector—and manufacturing, which each shed 7,000 jobs as well.
Healthcare may be doing well, especially relative to other industries, but it isn’t completely immune to market conditions.
Many hospitals and health systems have taken action to cut labor expenses by instituting hiring freezes and layoffs. Vanderbilt University Medical Center was one of those organizations in June, when it announced it would lay off up to 650 employees as it worked to reduce costs by $300 million.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Healthcare added 39,200 jobs in June and accounted for over 25% of the U.S.’s job gains, despite slower growth compared to May.
Hospitals (16,100), nursing facilities (14,400), and ambulatory care settings (8,700) drove most of the sector’s hiring.
Layoffs and hiring freezes at some health systems highlight ongoing cost pressures despite sector strength.