Healthcare faces numerous workforce challenges, but the industry has steadily added jobs after the COVID-19 pandemic disrupted staffing.
An Altarum analysis of U.S. Bureau of Labor Statistics data finds a dual reality for healthcare: The industry has added more than 1 million workers since March 2020 and, at the same time, thousands more healthcare jobs remain unfilled as demand for workers continues to far exceed the supply.
Here are five takeaways from Altarum's jobs analysis, which includes breakdowns of the sectors that led employment recovery:
1. Healthcare employment's rebound. Despite losing 1.6 million jobs between February and April 2020, healthcare bounced back by adding 2.6 million jobs by March 2024. This 6.1% growth not only recouped the losses but surpassed pre-pandemic employment levels by over 1 million jobs.
2. Hospital and ambulatory care job growth. Ambulatory care settings led healthcare employment growth, adding 850,200 jobs from February 2020 to February 2024, a 10.8% increase. Offices of physicians and home health services were key contributors, while hospitals added 279,400 jobs, reflecting a 5.3% growth. This trend highlights a shift in healthcare delivery, with more services moving out of traditional hospital settings.
3. Persistent workforce shortages. Healthcare faces significant workforce shortages despite substantial job growth. By the end of March 2024, there were 1.8 million job openings in healthcare and social assistance, compared to just 765,000 hires throughout the month. This adds up to a ratio of 2.3 job openings for every hire. The job openings rate, which peaked at 8.8% in 2022, indicates a persistent gap between demand for healthcare workers and the available labor supply.
4. Pandemic-driven employment shifts. The pandemic has accelerated changes in healthcare employment, particularly in ambulatory care and mental health services. The offices of mental health practitioners saw a 72% growth in jobs, driven by increased demand for behavioral health services. Home healthcare also expanded, as more patients opted for care at home over nursing facilities, indicating a long-term shift toward outpatient and home-based care.
5. Challenges in nursing and residential care. Nursing and residential care facilities continue to struggle with workforce recovery, remaining 119,600 jobs short of pre-pandemic levels as of March. This accounts for employment in the nursing and residential care subsector growing by 9.7% between March 2022 and March 2024. New federal regulations requiring minimum care hours in nursing homes by 2027 could further boost employment. Reliance on agency staffing — particularly in home health — complicates accurate employment tracking and adds a caveat to these figures.