The health care sector’s hiring spree has slowed significantly in August, adding just 31,000 jobs, according to the Bureau of Labor Statistics. This marks the lowest monthly increase since January 2022, indicating a return to pre-pandemic job growth patterns. While the overall sector has cooled, however, there are notable variations across subsectors.
A closer look at the data
Ambulatory health care services: Home health services continue to experience robust growth, adding 24,000 jobs in August. This reflects the rising demand for aging-in-place services. The sector is adapting to meet the evolving needs of patients seeking this model of care.
Hospitals: Hospitals’ job growth returned to pre-pandemic levels in August, adding 10,000 positions. As the sector normalizes, the skills required are shifting, with a focus on migration of care and technology-driven patient experiences
Nursing and residential health: Nursing and residential health care, however, saw a decline of 3,000 jobs. This subsector continues to struggle to recover from the pandemic, remaining below pre-COVID employment levels. At this rate, the sector won’t reach pre-pandemic job levels until the third quarter of next year.
Forward looking
The slowdown in overall health care job growth could be partly attributed to the increasing use of technology to improve care delivery. This trend is helping to streamline operations and reduce the need for previous job levels experienced for certain types of labor.
Despite the recent cooling, the health care sector is expected to continue growing in the coming months. Seasonal factors such as the end of insurance deductibles, flu season and routine care, combined with the aging population, will likely drive demand for both ambulatory and hospital services, and will increase jobs growth.
Get additional health care industry insights in our outlook.
