Health Care Jobs Prop Up U.S. Labor Market

Nearly all recent job gains in the U.S. have come from the health care industry, as an aging population and rising wealth drive demand.

Published on Feb. 15, 2026

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The U.S. labor market has been buoyed in recent months by the health care industry, which accounted for 95% of the 130,000 jobs added in January. Without these health care and related jobs, the U.S. would have nearly 400,000 fewer jobs than a year ago. The industry's growth has been driven by an aging population, rising wealth among baby boomers, and increased demand for services from home health aides to cosmetic procedures.

Why it matters

The outsized role of health care in the labor market highlights the industry's importance to the broader economy, as well as concerns about potential labor shortages and the impact of policy changes on access to care, especially in rural areas.

The details

Health care and social assistance now makes up about 15% of all U.S. jobs, nearly double the share it did in 1990. The industry suffered early pandemic losses but has since rebounded rapidly, especially in 'mid-level' positions like physician assistants and nurse practitioners. Demand has been driven by an aging population, with more than 1 in 6 Americans now 65 or older, as well as rising wealth among baby boomers leading to increased spending on medical care, including cosmetic procedures.

  • The U.S. added 130,000 jobs in January 2026, with 95% coming from the health care industry.
  • The first baby boomers are beginning to turn 80, and the number of Americans over 80 is expected to double by 2045.

The players

Laura Ullrich

Director of economic research in North America at the Indeed Hiring Lab.

Neale Mahoney

An economics professor at Stanford University.

Brandon Rees

A 44-year-old who graduated from nursing school in June and now works as a critical care nurse in Fort Wayne, Indiana, making $34 an hour.

Bryan Samuelson

A 38-year-old registered nurse at a hospital in Portland, Oregon, who previously worked as a software test engineer.

Sam Kuhn

An economist at the recruitment software company Appcast.

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What they’re saying

“Health care is holding up this lopsided jobs market. Not all of that is a surprise: If you'd gone back to 2000 and asked, 'What are going to be the jobs of the future 25 years from now?,' health care would've been at the top of that list. But what is surprising is how strong growth has remained even as everything else slows down.”

— Laura Ullrich, Director of economic research in North America at the Indeed Hiring Lab

“A lot of health care spending is directly connected to wealth. 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.”

— Laura Ullrich, Director of economic research in North America at the Indeed Hiring Lab

“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. Plus there's pretty unlimited earning potential: I can always pick up extra shifts.”

— Brandon Rees

“There was just no stability in that industry. Going back to school for nursing ended up being the best thing I ever did — there is so much versatility in health care.”

— Bryan Samuelson

“We're likely to see some acute labor shortages in health care, especially as immigration falls to zero. But is demand for health care workers going to continue? I would say yes.”

— Sam Kuhn, Economist at the recruitment software company Appcast

The takeaway

The health care industry's outsized role in driving recent U.S. job growth highlights the industry's importance to the broader economy, but also raises concerns about potential labor shortages and the impact of policy changes on access to care, especially in rural areas.