While healthcare job gains drove overall U.S. employment growth in December, the sector’s momentum has slowed below its 2024 and 2025 averages.
Healthcare added an average of 56,000 jobs per month in 2024, but that figure fell to 34,000 in 2025. December saw just 21,100 new jobs in the sector, according to the most recent U.S. Bureau of Labor Statistics report.
Across industries, most companies are planning to maintain or reduce headcount in 2026. Only 1 in 3 CEOs say they plan to increase their workforce size.
Several policy changes are affecting hiring at hospitals and health systems. Three healthcare organizations have announced job cuts in 2026, including Pomona (Calif.) Valley Hospital Medical Center, which plans to eliminate 265 positions due to state and federal funding reductions. In 2025, more than 90 hospitals and health systems planned job cuts, including Oakland, Calif.-based Alameda Health System, which cited funding cuts included in the One Big Beautiful Bill Act in its December decision to cut 296 jobs.
Uncertainty surrounding a new $100,000 fee tied to H-1B visa applications is also influencing hiring. As teaching hospitals await confirmation of potential exemptions for physicians and medical residents, many are deploying contingency plans. These include hiring more physician assistants, paying the fee for a reduced number of residents or reconsidering candidates who require H-1B sponsorship.
“We’re going to be as creative as we can to keep the workforce going,” Eric Appelbaum, DO, senior executive vice president and COO of New York City-based SBH Health System, told AAMC News.
Meanwhile, U.S. demographic shifts are expected to deepen healthcare workforce shortages in the future. The population is projected to slow over the next three decades before eventually shrinking, with the number of Americans 65 and older growing faster than younger cohorts.
Health system leaders say these trends present long-term workforce challenges.
“I don’t think we’re paying enough attention to the generational shift in the workforce,” said Richard Lofgren, MD, president and CEO of Oklahoma City-based OU Health. “That shift is more profound than previous ones we’ve seen. If you approach workforce management monolithically, without understanding these generational differences, you simply aren’t going to optimize your talent.”
At the same time, new technologies are creating anxiety for workers. While fears of mass job loss from artificial intelligence have spread across many industries, healthcare has been largely insulated. However, AI has already reached hospitals and health systems, Sunil Dadlani, executive vice president and chief information, digital and cybersecurity officer of Morristown, N.J.-based Atlantic Health System, told Becker’s in August.
“From clinical decision support to revenue cycle automation, AI is already augmenting workflows, accelerating diagnosis and streamlining administrative tasks,” Mr. Dadlani said. “Roles in medical coding, documentation, scheduling, and even elements of diagnostics are increasingly supported — or replaced — by intelligent systems.”
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