RT’s Three Key Takeaways

  1. Since the COVID-19 pandemic began, the healthcare sector has added over one million jobs, and demand for healthcare workers remains significantly high.1
  2. The fastest growth in employment has occurred in the ambulatory care sector which added 850,200 jobs, including 178,200 jobs in the home healthcare services sector.1
  3. Despite the rapid growth in healthcare employment, job openings continue to exceed hires, driven by rising demand and high quit rates due to burnout and better opportunities in less taxing roles.1


At the onset of the COVID-19 pandemic, healthcare employment dropped sharply due to temporary closures and reduced non-essential care; however, the industry quickly rebounded, adding over a million workers since March 2020, though many jobs remain unfilled, highlighting ongoing recruitment and retention challenges, according to a report from Altarum.1

According to the US Bureau of Labor Statistics, the sector lost 1.6 million jobs from February to April 2020. By March 2024, it had not only recovered but added a net gain of 2.6 million jobs, representing a 6.1% growth from pre-pandemic levels, according to a report from Altarum.1 This growth has been particularly strong in the last two years, with an 8.2% increase from March 2022 to March 2024, outpacing all other industries. The sector’s growth rate of 3.9% in 2023 was the fastest since 1991, according to a report from Altarum.1

Employment gains have varied across subsectors.1 The ambulatory care sector saw the highest growth, adding 850,200 jobs (a 10.8% increase) from February 2020 to February 2024.1 Offices of mental health practitioners experienced a 72% growth, reflecting increased demand for mental health services during the pandemic.1 Hospitals also grew, adding 279,400 jobs, a 5.3% increase. However, nursing and residential care facilities are still short of pre-pandemic employment levels, with nursing homes experiencing significant job losses, according to a report from Altarum.1

Despite rapid employment growth, many healthcare jobs remain unfilled, according to a report from Altarum.1 The Job Openings and Labor Turnover Survey (JOLTS) data show the average monthly job openings rate in healthcare reached a record high of 8.8% in 2022.1 Although this rate declined slightly in 2023, many job openings persist.1 Increased demand for workers and higher quit rates, driven by burnout and better opportunities in other sectors, have contributed to this trend, according to a report from Altarum.1

Several factors have influenced these employment trends. The aging population and a shift towards outpatient care have driven growth in ambulatory care. The pandemic increased the need for mental health services, leading to job growth in this area. Additionally, the preference for home-based care among older adults has boosted employment in home health services. Despite these trends, the health care industry still faces a significant gap between job openings and hires, indicating ongoing recruitment and retention issues.


Source: Altarum. McCall, S. “The Health Care Sector Has Added One Million Workers Since the Start of the Pandemic. Demand is Even Higher.” 2024 July 3.https://altarum.org/news-and-insights/health-care-sector-has-added-one-million-workers-start-pandemic-demand-even

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