In July, the healthcare sector stood out in an otherwise weak U.S. job market. Healthcare and social assistance added a combined 73,300 jobs, with the healthcare portion driving the gains despite broader payroll growth slowing. Within healthcare, ambulatory care services led the way, hospitals followed, and nursing and residential care facilities also contributed meaningful gains. Here’s a closer look at what the July 2025 jobs report shows and what it means for the sector going forward.
What the July 2025 Healthcare Jobs Report Revealed:
- Overall job growth in healthcare and social assistance: 73,300 new jobs in July 2025.
Within the healthcare sector:
- Ambulatory care services: +34,000 jobs (the largest contributor to healthcare growth)
- Hospitals: +16,000 jobs
- Nursing and residential care facilities: +6,000 jobs
Context in the broader economy:
- Total nonfarm payroll employment rose by only 73,000 in July (a slower month for the overall labor market)
- Revisions to prior months’ data were downward, underscoring the contrast between healthcare strength and overall weakness
- Why healthcare growth is happening (driving factors):
- Aging population increasing demand for care
- Rising prevalence of chronic conditions
- Expanded access to care through Medicaid and the Affordable Care Act
- The growth story versus the broader environment:
- Healthcare continues to expand while many other sectors cool, suggesting persistent demand for health services even as the economy slows
Breaking Down the Growth Drivers
Ambulatory care services leading the charge:
- Outpatient and primary care settings are expanding to meet patient needs, contributing the largest chunk of new jobs within healthcare.
- Hospitals and inpatient care:
- Hospitals added a healthy number of positions as patient volumes and services evolve, signaling ongoing demand for acute and post-acute care capacities.
- Nursing and residential care facilities:
- Care facilities added positions, reflecting ongoing demand for long-term care and supportive services for aging and vulnerable populations.
Challenges and Opportunities on the Horizon
Workforce shortages and burnout:
- The sector continues to face a shortage of qualified healthcare professionals, with burnout and high turnover adding to staffing pressures.
- Adapting to technology:
- Telehealth, AI, and digital health tools are reshaping care delivery. Healthcare workers will need new skills and training to leverage these technologies effectively.
- Balancing growth with financial pressures:
- Hospitals and health systems are under financial strain, which can pressure staffing models, wage growth, and investment in capacity. This requires prioritizing efficiency, strategic hiring, and targeted investments to sustain high-quality care.
- Opportunities for professionals:
- Strong demand across ambulatory care, hospital settings, and long-term care creates multiple career paths in clinical roles, IT-enabled care coordination, telemedicine support, and health administration.
- For organizations:
- Focus on workforce development, pipeline building (training programs, partnerships with schools), and retention strategies to combat burnout.
- Leverage technology to improve efficiency while maintaining patient-centered care.
Implications for Job Seekers, Employers, and Policymakers
Job seekers:
- Healthcare remains a strong employment option in July 2025, with openings in outpatient clinics, hospitals, and long-term care facilities. Consider upskilling in telehealth, informatics, or care coordination to align with evolving roles.
- Employers:
- Invest in retention strategies, flexible staffing models, and technology-enabled workflows to address shortages and burnout while meeting rising demand.
- Policymakers:
- Continued support for access to care (Medicaid, ACA provisions) can sustain demand for healthcare workers.
- Policies that support workforce development, training incentives, and improved workplace well-being could help alleviate shortages.
Bottom Line
July 2025 underscored a paradox: healthcare showed robust employment growth in a month when the broader labor market slowed. This divergence highlights the enduring demand for health services driven by demographic and chronic-condition dynamics, even as the economy adjusts. For the healthcare sector, the path forward involves balancing growth with financial pressures, investing in people and technology, and ensuring that care quality remains at the forefront.
