We note that the labor market is starting to cool off. The health care and social assistance sectors are bucking that trend, hiring like gangbusters. In July alone, these sectors cranked out a remarkable 55,000 jobs. This represented a whopping three-quarters of all the jobs created in the entire U.S. economy that month. The demand for health care services will only increase as our population ages. Much of this increase is due to the continued recovery from job losses associated with the COVID-19 pandemic.
The health care sector supports a multitude of critical services, from child care to counseling. Of particular significance, the “individual and family services” category accounted for the entirety of job growth in July. This illustrates a shift in the state’s workforce demands. Perhaps most importantly, it illustrates the critical role of health care and social assistance in ensuring communities thrive.
Sustained Demand Amid Economic Uncertainty
Experts predict that job growth in the health care sector is likely to continue, even if the broader economy faces a downturn. Daniel Zhao, an economist at Glassdoor, noted that “the job market is being propped up by health care and social assistance.” This assertion reflects a growing recognition of the essential nature of health care services, which are deemed non-optional for the population.
According to the U.S. Census Bureau, in 2014 there were over 46 million Americans age 65 and older, and this number continues to increase. It is set to almost double from roughly 43 million in 2012 to 83 million by 2050. This gargantuan increase in population will create a tsunami of pent-up demand for health care services. Because of this, a continued demand for workers in this area will exist.
Industry analyst Cory Stahle noted the unusual nature of this sector’s growth. “There’s clearly an industry that stands out right now and that would be health care,” he stated. This viewpoint further highlights the impressive durability of health care employment in an otherwise topsy-turvy economy.
Job Creation Beyond the Numbers
This expansion goes beyond being a number on a sheet of paper. It’s a response to increasing societal demand. In July, employers were clamoring to hire therapists. They understood how critical therapists are in addressing the worsening mental health crisis exacerbated by the pandemic. With communities still trying to rebound from a multitude of stresses related to economic downturns, health care services have become even more critical.
According to Zhao, “We do expect job growth in health care to continue as the U.S. population ages and demand for health services continues to rise.” This testimony at least anecdotally mirrors the rapid growth we’ve experienced in the market over the last several years. It further highlights the profession’s resilience, particularly juxtaposed against other sectors facing greater flux.
In June, average hourly earnings in social assistance was $23.60. Beyond the good jobs that these sector jobs are bringing to the region, it is worth noting that these jobs pay pretty well. As more individuals seek careers that contribute positively to society, health care and social assistance appear poised to attract talent.
Looking Forward in Health Care Employment
As the labor market faces rapid shifts in dynamics, health care is the lone exception — creating new jobs at a steady rhythm. The sector continues to be on the frontlines of economic recovery, adding 18,000 jobs just in the month of July alone. Just last month, almost a quarter of all new jobs were created in the health care and social assistance industries. This trend continues to reassert their vital importance as the linchpin of employment in economic downturns.
These changes are complicated by the demographic trends and an ongoing, insatiable demand for services that experts expect will fuel continued growth within this sector. The health care and social assistance sectors demonstrate incredible buoyancy. This provides renewed promise to job seekers seeking reliable work in a generally inhospitable labor market.
