How Health Care Is Keeping the Job Market Afloat

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The health care sector is doing the heavy lifting when it comes to jobs growth, and recent federal labor data shows that without it, the labor market would be in serious trouble.

In fact, if you take health care and social assistance out of the picture for January data, overall growth would be barely noticeable, as most other sectors are treading water or falling behind.

The latest jobs report from the Bureau of Labor Statistics showed that total nonfarm payroll employment rose by 130,000 in January — and health care alone comprised nearly two-thirds of that total (63%). When health care is grouped with social assistance (as it usually is in federal data) the two sectors comprised 95% of all job growth in January.

This isn’t a one-month fluke. During 2025, health care job growth averaged 33,000 new jobs each month, while most sectors saw little change or declines throughout the year.

Health care job growth continues expanding

Since 2022, the change in the education and health services “supersector” has seen greater year-over-year growth than any other major sector. From 2024 through 2025, hiring increased by 2.86%, compared to the only other sectors with positive growth: utilities (+1.54%), leisure and hospitality (0.89%) and construction (+0.53%).

Over the past four years, as expressed by the total number of jobs added, health care has outpaced all other job sectors.

(Note: The chart below depicts “supersectors,” which means it groups health care with education services.)

The only other sector that’s close in total number of jobs added is professional and business services, which includes positions in legal and accounting services, advertising and administrative support.

However, December 2025 data from the most recent Job Openings and Labor Turnover Survey (JOLTS) report shows that professional and business services had one of the highest layoff and discharges — in both rates and absolute numbers — compared to other sectors, suggesting that it’s not performing as it once did.

By contrast, JOLTS data showed few people involuntarily left health care due to layoffs in December, while quits also remained low — both indicators of a strong, stable environment in the sector.

Why is health care employment so strong?

Health care is one of the few recession-proof job sectors — there will always be chronic conditions, illness and an aging population. That high demand creates a steady need for workers, and that need is only growing.

Elizabeth Renter, NerdWallet’s senior economist, says in an ideal world, job growth would be widely dispersed across industries. “However, a large aging population is helping to prop up demand for healthcare jobs, and this isn’t likely to subside anytime soon” she says.

Here’s why health care is likely to remain the strongest engine for U.S. job growth:

Aging population. The largest swath of the U.S. population — Baby Boomers — are entering the stage of life when health care needs are highest. A greater number of older adults means higher demand for home health care, hospitals and nursing homes, all of which require more staff.

Chronic diseases. Conditions like diabetes, heart disease, high blood pressure, obesity and cancers are rising, driving steady demand for care, including specialty and long-term support.

COVID-19 workforce impact. The high demand and stress on health care workers during the pandemic drove a mass exodus from the field, leading to ongoing job growth as hospitals and clinics continue to hire to fill empty positions.

Greater access to care. The expansion of government-sponsored health care has lowered financial barriers to access, leading to more people seeking health care services, including preventative care and screenings. More insured people means higher demand and greater staffing needs.

Evolving health care landscape. Technological advances, trends and new therapies are creating more jobs across hospitals, home care, outpatient centers, surgical clinics and more.

Barriers to entry keep labor demand high. Many health care positions need specific education and training, which limits competition. Some roles, especially specialty positions, can take longer to fill.

Health care hiring shows no signs of stopping, but if other sectors struggle to add jobs or layoffs rise, even strong health care growth may not be enough to keep the labor market from stumbling.

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About the author

Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She is an on-air contributor and producer of Money News segments for NerdWallet’s Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post, The Los Angeles Times and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor’s degree in journalism from Purchase College, State University of New York.

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