While tech jobs remain a defining part of California’s economy, healthcare hiring is increasingly sustaining the state’s labor market, with much of the growth concentrated in lower-wage healthcare and social assistance roles, according to a May 11 Economic Innovation Group analysis cited by The Wall Street Journal.
Five things to know:
1. California’s healthcare and social assistance workforce grew 25.3% from March 2022 to March 2026, the highest growth rate of any state, according to the Economic Innovation Group analysis of Bureau of Labor Statistics data. The state also posted the nation’s largest gap between healthcare and non-healthcare job growth.
2. Much of the growth came from lower-wage roles. Services for older adults and disabled people added 211,000 jobs — nearly half of all healthcare job growth in the state — with average pay around $25,000 annually.
3. Excluding healthcare and social assistance, California’s remaining sectors collectively lost jobs from March 2022 to March 2026, according to the analysis. Employment across non-care sectors declined 0.3% during the period.
4. Researchers said California is undergoing a broader labor market shift as healthcare and social assistance increasingly outpace higher-paying sectors such as tech, manufacturing and professional services.
5. The report raises questions about how sustainable the healthcare hiring boom will be amid Medicaid funding cuts tied to HR 1 and reduced federal healthcare support. Researchers noted California has expanded Medi-Cal coverage in recent years, helping fuel healthcare demand and job growth.
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