Dive Brief:
- The healthcare sector added 22,000 jobs in July, marking a significant slowdown compared to recent months, according to data from the U.S. Bureau of Labor Statistics released Friday.
- The industry added significantly fewer jobs than the 42,000 roles created in June and the 35,000 created in May. The number of jobs added also fell below the 36,000 average monthly increase over the past year.
- Still, though July's healthcare job gains slowed, the sector remains a consistent driver of job growth in the broader economy, as employment in other industries like retail trade and hospitality declined.
Dive Insight:
Overall, total nonfarm payroll employment dipped by 23,000 jobs, with the largest declines driven in government education, retail trade, and financial activities. It’s the first net job decline since February as factors like inflation and high energy costs continue to pressure the U.S. economy.
In healthcare, ambulatory service roles led gains, adding 18,000 new jobs, while nursing and residential care facilities contributed 4,300 jobs. However, hospital employment flattened, declining by 400 jobs. Dentists and child care services jobs also shrank.
Within ambulatory care, home health care services showed strength, adding 4,600 jobs, while offices of other health practitioners added 5,800 positions.
The moderation in healthcare hiring comes as the sector continues to navigate workforce challenges exacerbated by the coronavirus pandemic, including high turnover in patient-facing roles like nursing and elevated burnout. Hospitals turned to pricey contract labor during the coronavirus pandemic to grapple with employee attrition, though executives say staffing challenges have eased as hospitals invest in labor and staffing initiatives.
The hospital job cuts come as the industry also braces for more turmoil from looming Medicaid cuts and more Americans going uninsured as a result of policy changes in the Affordable Care Act exchanges.
