Healthcare has steadily grown into one of the nation’s most powerful job engines, and despite some headwinds, the numbers suggest it’s still holding strong. Landlords with medical tenants have reason to feel optimistic, as the sector continues to bolster its workforce at a pace that underscores its resilience.
From January 1990 to March 2020, healthcare employment more than doubled, climbing from 8.4 million to 16.4 million jobs, according to data from the Federal Reserve Bank of St. Louis. The industry was not immune to the pandemic downturn, losing about 1.5 million jobs in 2020, but it quickly rebounded. By February 2022, employment stood at just over 16 million, and by August 2025, it had grown by 13.2% to more than 18.2 million.
The most recent labor report from the Bureau of Labor Statistics shows that healthcare added 31,000 positions in August, slightly below the average monthly gain of 42,000 over the past year. That growth accounted for about a third of the nation’s total nonfarm job gains for the month. On average this year, healthcare has added 33,787 jobs each month — representing nearly half of all private-sector employment growth. By comparison, overall nonfarm private hiring in 2025 has averaged 71,000 jobs a month, down from 130,000 in 2024.
The sector’s momentum is being powered by demographic forces, including the aging of the U.S. population, which increases demand for care and services. But growth spans beyond older adults, as The Wall Street Journal notes. New parents rely on delivery and childcare services, younger adults face rising health issues and a steadily expanding population needs medical attention at every stage of life. Roughly one in six private-sector jobs is now in health services, totaling 23.5 million. That outpaces employment in manufacturing, which stands at 12.7 million, and in retail, with 15.6 million. The professional and business services sector comes closest, employing 22.5 million people.
Still, there are concerns about whether this growth trajectory can continue. Goldman Sachs, citing payroll processor ADP data, pointed out that this year, a category combining education and healthcare jobs has been shrinking. That contrasts with government data, though ADP does not separate the two sectors. Another challenge is the tight labor market for medical workers, raising questions about whether providers can hire and retain enough staff to meet rising demand. Invesco has projected that these pressures will keep senior housing cap rates at moderate-to-high levels, a trend that could spill over into other segments of healthcare real estate.
Government spending also poses a risk. The Congressional Budget Office has estimated that Medicaid will face $911 billion in cuts over the next decade, with the steepest reductions coming toward 2034. Such cuts could reshape the financial underpinnings of healthcare employment growth in the years ahead.
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