A Resilient Workforce: Health Care Employment Returns to Pre-Pandemic Levels
After the historic job losses in early 2020, the U.S. health care workforce has made a significant comeback. According to new research from the University of Michigan, current health care employment figures now align with projections that were in place before the COVID-19 pandemic began.
This rebound marks a milestone in the industry’s post-pandemic recovery. However, the journey hasn’t been uniform across all health care sectors. While some areas are thriving, others continue to face serious staffing shortages that threaten patient care and service quality.
Uneven Recovery Across Health Care Settings
One of the most important findings of the study is that health care employment trends vary dramatically by setting. Doctors’ offices have shown strong growth, even surpassing pre-pandemic projections since 2023. In contrast, skilled nursing facilities and intensive behavioral health centers are still grappling with workforce shortages that began during the height of the pandemic.
The research—led by Thuy Nguyen of the University of Michigan’s School of Public Health—analyzed employment data from 2016 through 2024. Published in JAMA, the study tracks how different health care sectors have responded to the shocks of the pandemic.
Behavioral Health Sees Explosive Growth—With a Caveat
The study highlighted a sharp contrast within the mental health sector. Office-based behavioral health providers—including therapists and counselors in private practices—saw a staggering 84% increase in employment between 2019 and 2024. This growth reflects the rising demand for accessible, outpatient mental health care, especially via telehealth.
However, intensive behavioral health facilities, which provide more comprehensive inpatient and substance abuse treatment, have faced challenges in rebuilding their workforces. These settings often involve higher stress, complex patient needs, and more exposure to health risks—all of which contribute to ongoing hiring difficulties.
Why Some Health Care Settings Recovered Faster
Researchers point to several reasons why certain health care settings bounced back faster:
- Lower COVID-19 risk in office-based environments made them more appealing to workers.
- Less intense workloads compared to hospitals or nursing homes reduced burnout.
- Rising demand for mental health services post-pandemic created job growth, particularly in outpatient and telehealth care models.
As demand continues to rise for mental health support, especially among youth and working adults, the growth in outpatient behavioral services is expected to continue.
Long-Term Care and Nursing Homes Still Struggling
Despite overall gains in health care employment, nursing homes and long-term care facilities remain critically understaffed. Nguyen’s earlier 2023 study found that these facilities were still operating with staffing levels more than 10% below pre-pandemic benchmarks.
Persistent gaps in nursing staff not only place strain on current workers but also risk compromising patient outcomes and access to quality care.
What This Means for Patients and Providers
“For patients and families, these employment patterns have real-world implications,” said co-author Kosali Simon, a health economics professor at Indiana University. “The continued staffing challenges in nursing homes and intensive mental health facilities could affect access to care and quality of services in these critical health care settings.”
With health care employment rebounding unevenly, the industry faces a dual challenge: celebrating workforce recovery in some areas while urgently addressing the persistent gaps in others.
What This Means for Patients and Providers
“For patients and families, these employment patterns have real-world implications,” said co-author Kosali Simon, a health economics professor at Indiana University. “The continued staffing challenges in nursing homes and intensive mental health facilities could affect access to care and quality of services in these critical health care settings.”
With health care employment rebounding unevenly, the industry faces a dual challenge: celebrating workforce recovery in some areas while urgently addressing the persistent gaps in others.
As we move further into 2025, the focus must shift from recovery to sustainability. Policy makers, health systems, and stakeholders need to:
- Invest in workforce incentives for under-resourced care settings.
- Expand telehealth and hybrid care models where applicable.
- Prioritize mental health workforce development to meet rising demand.
- Support long-term care with better pay, working conditions, and training.
These strategies will help strengthen the foundation of the U.S. health care system and ensure it remains resilient in the face of future challenges.
What This Means for Patients and Providers
“For patients and families, these employment patterns have real-world implications,” said co-author Kosali Simon, a health economics professor at Indiana University. “The continued staffing challenges in nursing homes and intensive mental health facilities could affect access to care and quality of services in these critical health care settings.”
With health care employment rebounding unevenly, the industry faces a dual challenge: celebrating workforce recovery in some areas while urgently addressing the persistent gaps in others.
As we move further into 2025, the focus must shift from recovery to sustainability. Policy makers, health systems, and stakeholders need to:
- Invest in workforce incentives for under-resourced care settings.
- Expand telehealth and hybrid care models where applicable.
- Prioritize mental health workforce development to meet rising demand.
- Support long-term care with better pay, working conditions, and training.
These strategies will help strengthen the foundation of the U.S. health care system and ensure it remains resilient in the face of future challenges.
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“For patients and families, these employment patterns have real-world implications,” said co-author Kosali Simon, a health economics professor at Indiana University. “The continued staffing challenges in nursing homes and intensive mental health facilities could affect access to care and quality of services in these critical health care settings.”
With health care employment rebounding unevenly, the industry faces a dual challenge: celebrating workforce recovery in some areas while urgently addressing the persistent gaps in others.
As we move further into 2025, the focus must shift from recovery to sustainability. Policy makers, health systems, and stakeholders need to:
- Invest in workforce incentives for under-resourced care settings.
- Expand telehealth and hybrid care models where applicable.
- Prioritize mental health workforce development to meet rising demand.
- Support long-term care with better pay, working conditions, and training.
These strategies will help strengthen the foundation of the U.S. health care system and ensure it remains resilient in the face of future challenges.
What This Means for Patients and Providers
To learn more about how technology and flexibility are reshaping the healthcare landscape, explore our insights on AI guidelines in healthcare and the growing appeal of travel healthcare careers—two trends driving innovation, adaptability, and opportunity across the industry.
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