As of 2025, the U.S. health industry employs an estimated 19 to 20 million people, representing roughly 12% of the entire national workforce.
Makes healthcare the largest employment sector in the country, surpassing retail, manufacturing, and education in total jobs.
The number has grown steadily over the past decade, from about 16.3 million in 2015 to nearly 18 million in 2024, driven by rising demand for aging care, chronic disease management, and post-pandemic staffing recovery.
Projections from the Bureau of Labor Statistics (BLS) and Health Resources and Services Administration (HRSA) suggest that by 2030, the sector could reach 21–22 million workers, cementing its position as the economic backbone of U.S. service employment.
The Scale of the U.S. Health Workforce
The U.S. healthcare system is not one unified industry; in fact, it’s a network of hospitals, clinics, laboratories, research institutions, and public health agencies. Together, they make up about one in every eight jobs in the country.
According to HRSA’s State of the Health Workforce 2024 report, the core healthcare workforce (clinicians, nurses, and allied health professionals) accounted for more than 17 million workers by the end of 2023.
When including administrative, pharmaceutical, and health technology roles, the broader health industry easily crosses 20 million by mid-2025.
Who Makes Up the Health Workforce
The health industry includes hundreds of specialized professions, from cardiologists to dental hygienists, from respiratory therapists to IT analysts maintaining hospital systems.
But a handful of groups make up the majority of the workforce.
The U.S. also continues to face massive demand for qualified nursing staff, particularly in hospitals and long-term care. As a result, employers increasingly turn to specialized recruitment networks like Executive Placements, which help connect licensed nurses and healthcare professionals with institutions facing urgent staffing needs. Platforms like this have become an important bridge between clinical talent shortages and the growing demand for skilled care professionals across states.
Economic and Social Impact
The health sector’s size makes it a pillar of the U.S. economy. In 2024, it accounted for about $4.6 trillion in national spending, or 17.6% of GDP, and generated over 18% of all new jobs created that year.
Every new healthcare job creates an estimated 1.3 indirect jobs in logistics, administration, and technology. For example, hospitals not only employ clinicians but also depend on IT support, cleaning crews, billing specialists, and data security teams, functions that are rarely counted in “medical” employment statistics but are essential to operations.
Healthcare wages have also grown faster than the national average.
According to the University of Chicago’s Becker Friedman Institute (2025), median earnings for full-time healthcare workers increased 12.7% from 2020 to 2024, outpacing inflation and average wage growth in manufacturing or retail.
Gender and Diversity in the Workforce
Healthcare remains one of the most female-dominated sectors in the United States. The CDC reports that nearly 80% of healthcare workers are women, especially in nursing, home care, and administrative roles.
However, representation gaps persist in senior and specialized positions; men make up 64% of physicians and 72% of hospital executives.
Shortages and Pressures
Despite the growth, the U.S. is facing serious staffing shortages.
The American Journal of Medicine (2024) projects a shortage of nearly 100,000 physicians and 200,000 registered nurses by 2036. This shortage will be most severe in rural and primary care settings.
Aging demographics are a key factor; more than one-third of current RNs are over 50, and two-thirds of physicians plan to reduce clinical hours or retire within 10 years.
Regional Differences
Healthcare employment varies widely across the U.S., due to population density and healthcare infrastructure. States with major urban centers tend to have larger health workforces, but smaller states often have higher shares of their total workforce in healthcare.
The Road Ahead: 2025–2030 Outlook
Looking toward 2030, the health industry will continue expanding, but with a shift toward outpatient and home-based care.
Ambulatory health services are projected to add 1.2 million jobs, driven by telemedicine, chronic disease management, and population aging.
Artificial intelligence and automation will change, not eliminate, existing roles. Clinical documentation, diagnostics, and scheduling are expected to be increasingly supported by AI systems – freeing clinicians for patient care but reshaping administrative employment.
BLS forecasts 9% overall growth in health-related jobs from 2023 to 2033, double the national average. By 2030, one in every seven American workers could be employed in a health-related role.
Bottom Line
The U.S. health industry in 2025 is a massive, evolving ecosystem employing nearly 20 million people, driving over one-tenth of all American jobs, and influencing everything from local economies to national budgets.
While the sector continues to grow, it also faces unprecedented pressure: an aging population, workforce burnout, and regional shortages that could reshape care delivery over the next decade.
Still, the broader trend is clear: healthcare is now America’s dominant industry, both in workforce and societal importance. Its steady expansion reflects not just medical demand, but the nation’s long-term pivot toward a care-based economy.
