Healthcare Employment Continues to Outpace the Broader Labor Market

By: Margaret Gachau, The Quinnipiac University Global Economics Research Team

In today’s report on the healthcare economy:

• Healthcare Employment Leads the Labor Market as of January 2026.

• Healthcare Maintains a Stable and Expanding Share of U.S. Employment.

• Structural Spotlight.

Healthcare Employment Leads the Labor Market as of January 2026

As of January 2026, healthcare employment stands approximately 18% above its January 2019 pre-pandemic level, compared with roughly 4% growth across the rest of the economy. Despite a sharp contraction during the early pandemic period, the sector not only recovered but expanded at a notably faster pace than other industries. The sustained divergence suggests that healthcare labor demand may be shaped more by structural factors, such as demographics and long-term care needs, than by short-term cyclical fluctuations, underscoring its growing weight in the U.S. labor market.

Note: All data is seasonally adjusted. Data from the latest two months are preliminary.

Source:   Bureau of Labor Statistics (BLS) and own calculations.

Healthcare Maintains a Stable and Expanding Share of U.S. Employment

Note: All data is seasonally adjusted. Data from the latest two months are preliminary.

Source:   Bureau of Labor Statistics (BLS) and own calculations.

Healthcare employment has accounted for a relatively stable share of total U.S. nonfarm employment, with its proportion gradually rising over time. In 2019, the sector accounted for roughly 13.4% of total U.S. employment. In 2020, amid pandemic-related contractions in other industries, healthcare’s employment share temporarily increased. As the broader economy reopened and employment in other sectors recovered, healthcare’s share gradually returned toward its pre-pandemic range by 2022–2023, standing at approximately 13.57% in 2023. Overall, the post-pandemic period suggests resilience, with healthcare maintaining its established position within the U.S. employment landscape.

Structural Spotlight

Baby Boomers and the Expanding Demand for Health Care

 Source: World Bank Group and own adjustments.

Since the beginning of the 21st century, the United States has experienced a steady demographic

shift toward an older population. Individuals aged 65 and above accounted for roughly 12% of the total population. By 2024, that share has risen to nearly 18%, reflecting the continued aging of the baby boomer generation and improvements in life expectancy. As this cohort advances further into retirement years, healthcare utilization, particularly for chronic conditions and long-term care, tends to increase. The sustained rise in the 65+ population share provides structural support for elevated healthcare demand and helps contextualize the persistent expansion of health-sector employment relative to other industries.

Additional Readings

If not for this one industry, the U.S. labor market would look a lot worse

Health care is the ‘engine’ of the job market — and that’s risky for the economy