Brandon Rees traded a career in software development for scrubs, and hasn’t looked back. The 44-year-old graduated from nursing school in June and quickly secured a position at a heart institute in Fort Wayne, Indiana, earning $34 an hour as a critical care nurse. “I always kind of had it in the back of my head that this is something I’d want to do, and I absolutely love my job,” she said. “Plus, there’s pretty unlimited earning potential: I can always pick up extra shifts.”
Rees’s experience reflects a broader trend: healthcare is the dominant force in the U.S. Labor market, and its growth shows no signs of slowing. The industry now accounts for approximately 15% of all jobs, nearly double the share it held in 1990. While overall economic growth has cooled, healthcare continues to add jobs at a robust pace, driven largely by an aging population and increasing wealth among older Americans.
The sector’s resilience was particularly evident following the COVID-19 pandemic. After an initial dip in employment as clinics and nursing homes temporarily closed, hiring rebounded sharply, especially for mid-level positions like physician assistants and nurse practitioners, according to Neale Mahoney, an economics professor at Stanford University.
More than one in six Americans are now 65 or older, a demographic that disproportionately utilizes medical care. The first wave of baby boomers are entering their 80s, a trend projected to double the number of Americans over 80 by 2045, according to estimates from the Brookings Institution. This demographic shift is a primary driver of healthcare demand.
However, age isn’t the only factor. Rising wealth, particularly among baby boomers, is also fueling demand for a wider range of healthcare services. “A lot of healthcare spending is directly connected to wealth,” said Ullrich, an economist at Indeed. “Baby boomers are spending on hospital stays, ambulance rides and long-term care. But they’re also springing for full-body scans, plastic surgery and expensive dental care.”
The demand for in-home care is also increasing. The number of home healthcare jobs has risen by roughly 20% since January 2020, indicating a growing preference among Americans to age in place. This growth outpaces overall healthcare hiring, which has increased by 11.7% in the same period, and the broader job market’s growth of 4.3%.
This surge in demand has translated into higher wages across the healthcare industry. Healthcare wages grew by 1.3% in 2025, after adjusting for inflation, more than double the overall rate of 0.5% for all jobs, according to analysis by Mahoney and Caleb Brobst at Stanford. The specialized training and certifications required for many healthcare positions contribute to a limited pool of qualified candidates, further driving up wages.
Bryan Samuelson, a registered nurse at a hospital in Portland, Oregon, exemplifies this trend. After previously working as a software test engineer, Samuelson now earns more than double his previous salary. He cited a lack of stability in the tech industry and a desire for versatility as key factors in his career change. “There was just no stability in that industry,” he said. “Going back to school for nursing ended up being the best thing I ever did – there is so much versatility in healthcare.”
Despite the strong growth, challenges remain. The Bureau of Labor Statistics noted in 2003 that health, social service, and legal assistance industries accounted for 41% of new and emerging occupations in 2000. The Trump Administration’s immigration policies have created hurdles for foreign healthcare professionals seeking to work in the U.S., potentially exacerbating labor shortages. Recent nurses’ strikes across the country also highlight the need for improved staffing levels and workplace protections.
Potential cuts to Medicaid and the Affordable Care Act could also impact demand, particularly in rural areas. A shift towards increased reliance on emergency rooms, driven by lapses in insurance coverage, could further strain the system. Sam Kuhn, an economist at the recruitment software company Appcast, anticipates potential labor shortages, especially as immigration levels remain low.
