Healthcare job growth may be stalling as industry battens down

Modern Healthcare – Monday, September 8, 2025
By Hayley DeSilva

Healthcare was one of the few upbeat spots in the most recent jobs report but the shine may be starting to wear off.

Labor Department employment data released Friday noted that job gains in healthcare helped offset weakness in other parts of the economy.

That said, even in healthcare, the gains aren’t what they once were, as evidenced by new and revised figures. The report comes as the industry’s employers trim jobs up and down the ladder and hold positions open, preparing for the implications of the federal tax bill and uncertainty over tariffs.

The 30,600 healthcare jobs added in August helped offset losses in other industries so that overall, total nonfarm payrolls increased by 22,000 jobs in August. Still, the gains in healthcare paled in comparison with July.

Here’s what to know about where healthcare hiring stands.

The August numbers weren’t that impressive

The Labor Department said on average, there were about 42,000 healthcare jobs added each month during the past 12 months. That makes the 30,600 jobs added in August less impressive, moreso when it’s compared with the revised 51,300 industry jobs added in July. The monthly report, including figures from July, could be revised.

The Friday report noted where some of those August gains came from — 9,000 more jobs in hospitals, 13,000 in ambulatory care services and 9,000 in nursing and residential care facilities. Employment in outpatient care centers and other ambulatory healthcare services fell last month.

Revised numbers from June, July paint a weaker picture

The upbeat reports from earlier this summer were a little too upbeat.

According to revised data released Friday, there were 5,200 fewer healthcare jobs added in June than originally reported and 9,300 fewer jobs added in July.

For hospitals, the revisions meant 800 fewer jobs added in June and 4,600 fewer jobs added in July than previously reported.

Additionally, there were 4,600 fewer jobs added in June and 6,000 fewer jobs added in July than what was previously reported for nursing and residential care facilities.

Hospitals jobs may be decreasing

Employment at hospitals increased to 5.76 million jobs in August, from 5.75 million jobs in July — for a gain of about 8,800 jobs.

To be sure, it’s better to see the overall number grow rather than shrink but the hiring engine seems to be losing steam. In June 2025, hospital jobs increased by 13,700 jobs, and 12,200 jobs were added in July.

How does that compare historically? Between August 2023 and July 2025, hospital employment grew by an average of 17,400 jobs per month.

Many hospitals have recently started laying off staff and eliminating positions to save on costs. While most are administrative positions, some have cut clinical and executive roles as well.

Ambulatory healthcare services took a dip

The growth rate for ambulatory healthcare service jobs also has decreased, with an increase of 12,700 jobs in August compared with an average increase of 22,700 jobs per month between August 2023 and July 2025.

The drop comes at a time when many providers are turning their focus toward outpatient services as a way to increase revenue and save on costs, often opening new or acquiring existing facilities.

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