Healthcare drives US job growth as hospital hiring cools 

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Healthcare is fueling U.S. job growth, but inside hospitals and health systems, momentum is changing. 

Healthcare added 81,900 of the 130,000 jobs created nationwide in January, according to the U.S. Bureau of Labor Statistics, “way outperforming most of the rest of the economy,” Laura Ullrich, director of economic research at jobs website Indeed, told The Wall Street Journal.

Still, the strong January showing follows a year in which overall healthcare job growth cooled. The industry added an average of 57,000 jobs per month in 2024, BLS reported, but that pace slowed to just 33,000 a month in 2025.

Hospital hiring, specifically, tells a more nuanced story. BLS figures show hospitals added an average of about 15,500 jobs per month in 2023 as systems continued rebuilding workforces after the pandemic. That pace slowed to about 12,400 per month in 2024 and about 11,300 per month in 2025. While hospital job growth has cooled from its post-pandemic peak, it remains more than double its pre-COVID pace: hospitals added about 5,300 jobs per month in 2019.

Even as healthcare drives national job growth, health systems continue to tightly manage labor spend and, in some cases, reduce headcount. Becker’s has reported on nearly a dozen hospitals and health systems announcing job cuts so far in 2026, following nearly 100 workforce reduction decisions made last year. Health systems often cite reimbursement pressures, funding changes and broader efforts to stabilize finances and improve operational efficiency as reasons for the cuts. 

The mixed signals reflect the complex forces shaping healthcare employment. Demographic demand and regional population growth are driving expansion in some markets, even as margin pressure, AI adoption and immigration policy uncertainty slow or temper hiring.

The Journal noted last month that healthcare roles — particularly clinical positions — are generally less susceptible to automation than many other professions. Even so, AI is increasingly affecting administrative and operational roles within systems, with jobs that touch the revenue cycle being one expected area that AI will reshape first. 

Nationally, AI is emerging as a factor in workforce reductions. Executive outplacement firm Challenger, Gray & Christmas reported in November that AI was the sixth most-cited reason for U.S. job cuts in 2025 and the second leading cause in October alone.

Immigration policy adds another layer of uncertainty. Hospitals and health systems rely on the federal H-1B visa program to sponsor physicians and medical residents, particularly in rural and underserved areas. The Trump administration’s $100,000 H-1B application fee and a recently introduced bill to end the program have introduced additional planning considerations for some employers. 

A disciplined approach to growth

Amid these forces, organizations are pursuing measured expansion paired with tighter workforce controls. 

Morgantown, W.Va.-based WVU Medicine employs 35,000 associates and is operating under a  “strategic expansion with disciplined stabilization,” said Leeann Kaminsky, senior vice president and chief human resources officer of the 25-hospital WVU Health System.

The academic health system continues to add roles to meet rising patient demand across West Virginia and the surrounding region, with hiring decisions increasingly guided by long-term sustainability and operational priorities, she said.

Rather than broad expansion, WVU Medicine is prioritizing mission-critical roles and care delivery initiatives that strengthen access and outcomes.

“We are seeing targeted hiring in high-need clinical specialties, advanced services and roles that directly strengthen patient access, quality and operational effectiveness,” Ms. Kaminsky said.

Beyond selective hiring, the system is also investing in workforce development and retention. To build a pipeline of patient care technicians, Buckhannon, W.Va.-based WVU Medicine St. Joseph’s Hospital debuted a healthcare training pathway for high school students this month. The system also offers sign-on bonuses for hospital-based, direct-care nurses in return for a three-year work commitment. 

Expansion in high-growth markets

In other markets, population growth is driving more aggressive hiring.

South Carolina, one of the nation’s fastest-growing states, saw its population increase 1.5%, adding nearly 80,000 residents between July 1, 2024, and July 1, 2025, according to U.S. Census Bureau data released Jan. 27.

Beaufort (S.C.) Memorial, a 201-bed, nonprofit community hospital and the largest medical facility between Savannah, Ga., and Charleston, S.C., operates 32 physician practices, two cancer centers and three express care and occupational health clinics serving the Lowcountry region.

Amid sustained regional growth, the organization is expanding, with a new hospital expected to begin operations in December and a new freestanding emergency department/urgent care hybrid model opening around the same time.

The influx of new residents, seasonal visitors and retirees is increasing demand for primary care, emergency services and specialty areas such as urology and cardiovascular care, Tina Jackson, chief people officer of Beaufort Memorial, told Becker’s.

“We are seeing the need for more healthcare opportunities, whether that be physicians or emergent care needs,” Ms. Jackson said.

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