Healthcare job growth slowed in June 2025 by 37 percent over May, and added 39,200 jobs, well below the 62,200 jobs added in May. The slowdown was an indication of concern about whether healthcare hiring will continue at the same momentum as it has been over the past 12 months when an average of 43,000 employees were added per month. The following are the five major items noted in the recently released Bureau of Labor Statistics report (July 3).
1. Overall Job Gains Amid Softening Momentum
In June, the U.S. gained 147,000 jobs in all sectors, in line with the current averages, but also the first evidence of the slowdown in labor market growth. The employment sector, which had experienced the biggest employment gains, saw a significant decline in May.
2. Breakdown Within Healthcare Employment
The healthcare sector gained 39,000 positions, and this was below the recent average. These gains were mostly focused on the following sectors: 16,100 in hospitals, 14,400 in nursing and residential care facilities, and lastly 8,700 in ambulatory healthcare services. The physician offices provided 3,800 jobs, and home health care added 2,800 jobs.
3. Residential Long-Term Care Continues to Gain
Skilled nursing facilities, along with assisted living homes, were quite strong within nursing and residential care, as 7,000 jobs were added within skilled nursing and 6,000 within retirement and assisted living homes, and this is driven by the rising need for elder care services.
4. Healthcare Slows Relative to May, but Still Strong Overall
The unique progress went further in May where 62,000 jobs in healthcare were created, far above the average of 44,000 hires in the previous year. The slackening in June is of a normal, and not implosion, kind.
5. Broader Economic Context
Whereas healthcare continued adding jobs, the pace of hiring in the private sector eased. Government jobs rose by 73,000, with most of the gains in state and local education, compared with a 7,000 loss in the federal sector. Chronic economic uncertainty, high rates of interest and continuing skills shortages are dampening employment in all sectors.
What It Means for the Healthcare Labor Market in 2025
This slowdown signals caution—not distress—in healthcare hiring. Key considerations include:
- Demand for healthcare workers remains strong, but growth may plateau.
- Nursing and residential care continue expanding amid demographic tailwinds.
- Employers may face rising pressure to attract skilled talent in a tighter market.
- Staffing strategies may shift toward retention and re-skilling as openings remain padded by slower net growth.
Conclusion
Although healthcare added 39,000 jobs in June, the rate of growth was significantly slower compared to May. Hospitals and residential care facilities continue to grow the most but the trend of hiring may be becoming stable. This should be sending a warning sign to labor market observers and healthcare leaders to ensure that they keep an eye on their talent pipelines or they might not grow at the same rate as in the past.
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