As of 2025, the U.S. health industry stands as the largest employment sector in the nation, employing an estimated 19 to 20 million people. This represents approximately 12% of the total U.S. workforce, surpassing traditional employment sectors such as retail, manufacturing, and education. Over the past decade, the workforce in healthcare has increased steadily, growing from around 16.3 million in 2015 to nearly 18 million in 2024. This growth has been driven by a variety of factors, including an aging population, increased demand for chronic disease management, and recovery from staffing shortages exacerbated by the COVID-19 pandemic.
Composition of the U.S. Health Workforce
The U.S. healthcare system is multifaceted and includes a wide array of professionals working in hospitals, clinics, laboratories, research institutions, and public health agencies. According to the Health Resources and Services Administration (HRSA), the core healthcare workforce comprised more than 17 million workers by the end of 2023. When considering administrative and support roles, along with sectors like pharmaceuticals and health technology, the broader health industry is on track to exceed 20 million employees by mid-2025.
Key Employment Categories
A closer examination of the healthcare workforce reveals significant employment distribution across various sectors:
- Hospitals (public & private): 6.7 million (33%)
- Ambulatory & outpatient services: 5.2 million (26%)
- Nursing & residential care facilities: 3.4 million (17%)
- Home healthcare & personal care: 2.3 million (12%)
- Dental, optical, and allied health practices: 1.5 million (8%)
- Public health & government health services: 0.9 million (4%)
This breakdown illustrates that hospitals remain the largest employer in the healthcare sector, but outpatient and home healthcare services are also increasingly vital in meeting demographic needs.
Workforce Profile
The healthcare workforce is composed of a diverse array of professionals, from registered nurses to data analysts who support healthcare operations. Here are some of the most significant roles and their approximate numbers:
- Registered Nurses (RNs): 3.39 million
- Physicians: 0.93 million, including approximately 279,000 in primary care
- Licensed Practical/Vocational Nurses (LPNs/LVNs): 700,000
- Nurse Practitioners (NPs): 385,000, nearly doubled over the past ten years
- Physician Assistants (PAs): 168,000 with projections showing a 27% growth by 2033
Allied health professionals comprise a significant portion of the workforce, accounting for roughly 12 million roles in various support capacities.
Economic Impact
The health sector plays a crucial role in the U.S. economy. It accounted for about $4.6 trillion in national spending in 2024, which translates to 17.6% of the nation’s GDP. Furthermore, healthcare generated more than 18% of all new jobs created in that year. Each healthcare job is estimated to create an additional 1.3 indirect jobs across related sectors such as logistics and administration.
In terms of compensation, wages within the healthcare sector have consistently outpaced national averages. Median earnings for full-time healthcare workers saw a 12.7% increase from 2020 to 2024, outstripping inflation and growth in other sectors like manufacturing and retail.
Gender and Diversity
Healthcare is one of the most female-dominated sectors in the U.S. workforce, with approximately 80% of healthcare workers being women, particularly in nursing and administrative roles. However, men hold a majority in higher-paying specialties such as surgery and management positions. This gender disparity highlights continued challenges in achieving equitable representation at all levels within the healthcare field.
Workforce Demographics
- Women: ~80%
- Men: ~20%
- White (non-Hispanic): ~65%
- Black/African American: ~14%
- Hispanic/Latino: ~9%
- Asian/Pacific Islander: ~8%
Challenges and Shortages
Despite the notable growth in employment, the U.S. healthcare sector faces significant challenges related to workforce shortages. Projections suggest a potential shortage of nearly 100,000 physicians and 200,000 registered nurses by 2036. These shortages will be most pronounced in rural areas and primary care settings, driven by factors such as an aging workforce.
The aging demographics of healthcare professionals are particularly concerning; over one-third of current RNs are over 50, and many physicians are considering retirement or reduced hours in the coming decade.
Projected Shortages by Occupation
- Physicians (all specialties): 50,000 – 90,000
- Primary Care Physicians: 20,200 – 40,400
- Registered Nurses (RNs): 100,000 – 200,000
- Licensed Practical Nurses (LPNs/LVNs): Tens of thousands (state-dependent)
Regional Variations
Healthcare employment varies significantly across the United States, with urban centers generally housing larger health workforces. However, smaller states can also exhibit a high percentage of their total workforce in healthcare, emphasizing the importance of local healthcare dynamics.
Future Outlook (2025–2030)
Looking ahead, the health industry is expected to continue its expansion, with a predicted shift toward outpatient and home-based care. Telemedicine and population aging will fuel demand, adding approximately 1.2 million jobs in ambulatory services alone.
Moreover, advances in artificial intelligence and automation are set to reshape roles within the industry. While AI will assist in operational aspects, such as clinical documentation and diagnostics, the emphasis will remain on patient care, potentially alleviating clinician workload.
Overall, the Bureau of Labor Statistics forecasts a 9% growth in health-related jobs between 2023 and 2033—double the national average. By 2030, it is estimated that one in every seven American workers will be employed in a health-related role.
Conclusion
In summary, the U.S. health industry in 2025 is a vast and evolving ecosystem that employs nearly 20 million Americans. As it remains a dominant sector in both workforce and societal impact, the industry faces challenges that could reshape the future of care delivery. With an aging population and increasing demand for healthcare services, proactive measures—including targeted recruitment and retention strategies—will be essential to sustain this critical backbone of the American economy. Continual adaptation will not only address immediate workforce needs but also prepare the sector for the future demands of a care-based economy.
