The health care sector powered job growth in 2025 and makes up 12% of the current labor force — but is that risky for the economy?

In November alone, the BLS found that health care accounted for 46,000 of the 64,000 jobs added, or 72% of the total (3).

For context, health care as a whole employs 22 million Americans (4), about 12% of the current labor force (5). Although significant, basing the health of the entire labor force on 12% obscures the reality of the U.S. job market.

Some economists warn that this “good news” for health care hiring is covering a frail American economy as other sectors struggle to regain job growth momentum (6). Here’s what you need to know about the job market as a whole, and how you can prepare financially for a bleak market outlook.

Is health care hiding a painful economic reality?

A major issue with health care’s recent dominance is that it’s hiding bad numbers for the American labor market.

Overall, unemployment climbed to 4.6% in November, up from 4.0% at the start of 2025. The last time the unemployment rate was this high was in September of 2021 (7).

Certain sectors of the economy, particularly technology, have seen unprecedented job cuts and hiring freezes in recent months. Challenger, Gray & Christmas found that there were already 141,156 job cuts in technology this year, up 175% from last year (8).

Besides hiding these uncomfortable truths of the U.S. labor market, health care’s strong numbers have economists worried for another reason. Since the sector’s growth relies heavily on an aging population rather than factors like innovation or productivity, it’s not a strong indicator of genuine economic momentum.

The most recent U.S. Census found that the population of Americans over 65 grew five times faster than the total population between 1920 and 2020 (9). Since older Americans are more likely to use health care services, there’s simply more demand for this industry in the current environment.

So, a labor market that’s powered mainly by health care points to uneven demand and fewer opportunities for workers outside this field. Although that doesn’t necessarily translate into a crisis scenario, it’s also not a sign of strength.

What’s the right prescription for today’s job seekers?

While health care is the hottest sector in today’s job market, it’s also one of the most difficult to enter for those in other fields. Only people who go through the rigors of medical training when they’re young will get the credentials they need to enter professions like doctors, nurses or physical therapists.

For those already in today’s job market, trying to pivot into a clinical role simply isn’t realistic.

That being said, there is a bit of flexibility when looking for health care-adjacent roles. You don’t have to become an MD to potentially find a job in this booming sector.

Many large health systems nowadays need skilled employees in many other industries, ranging from IT and data science to HR and marketing. No matter your current expertise, consider ways to use pre-existing skills and certifications if you’re interested in joining the health care field.

At the same time, it’s important for anyone not in health care to recognize the reality of today’s choppy and uneven job market. No matter how secure a job feels, everyone needs to prepare for the possibility of prolonged unemployment.