Healthcare Workforce Recovers, Yet Shortages Persist
The U.S. healthcare sector has mostly recovered from the severe job losses of early 2020, but the rebound is uneven. While some areas, like doctors’ offices, have surpassed pre-pandemic employment trends, others continue to battle critical staffing shortages.
Uneven Recovery Across Healthcare Settings
According to a new study from the University of Michigan, the healthcare workforce has bounced back overall. However, the recovery is not uniform across all settings. While doctor’s offices have seen employment growth since 2023, skilled nursing facilities and intensive behavioral health centers face persistent shortages.
Researchers analyzed employment data from 2016 to 2024 to assess the impact of the pandemic on the healthcare sector. This research, published in JAMA, highlights the varying degrees of recovery among different healthcare sectors.
Mental Health Services See Divergent Trends
One key finding of the study concerns mental health services. Office-based behavioral health practitioners, such as therapists and counselors in private practice, experienced an 84% surge in employment between 2019 and 2024. Conversely, intensive behavioral health facilities providing comprehensive treatment have struggled to rebuild their workforce.
“The findings on behavioral health practitioners are significant and can guide policy changes in response to the rise of office-based practitioners amid a prolonged shortage in more intensive care settings that began during the pandemic.”
—Thuy Nguyen, U-M assistant professor of health management and policy
The study suggests several factors contributed to these disparities. Office-based practices may have been perceived as safer environments, offering less stressful work conditions. Additionally, the increasing demand for office-based mental health services, delivered through traditional and telehealth platforms, likely fueled the expansion in this area. Simultaneously, the Centers for Disease Control and Prevention reports a rise in mental health concerns among adults. (CDC 2023).
Implications for Patients
The differing employment patterns have tangible implications for patients. Kosali Simon, co-author of the study and Herman B. Wells Endowed Professor in Health Economics at Indiana University, stated, “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.”
Healthcare employment declined by nearly 7% in the second quarter of 2020 because of pandemic-related shutdowns. However, by 2024, healthcare jobs had returned to pre-pandemic levels, surpassing 24 million by September of last year. In comparison, non-healthcare employment dropped more significantly—over 11%—and has been slower to recover, remaining 3% below expected levels in 2024.
Research Methodology
The research used data from the U.S. Bureau of Labor Statistics, comparing actual employment figures with projected numbers based on pre-pandemic trends. The latest study builds on Thuy Nguyen’s previous work, which highlighted the initial impact of the pandemic on healthcare employment, particularly in nursing homes.
Co-authors of this study include Christopher Whaley from Brown University School of Public Health and Jonathan Cantor from RAND.
