Healthcare jobs account for over half of U.S. job gains in January surge

Healthcare dominated job growth in January, adding roughly 81,900 positions, more than half of all nonfarm payroll gains for the month, according to the U.S. Bureau of Labor Statistics. The concentration of hiring in healthcare highlights the sector’s central role in the ongoing labor market picture, even as other industries show more modest or mixed results.

Within healthcare, multiple subsectors contributed to growth. Ambulatory healthcare services added about 27,000 jobs, hospitals contributed roughly 34,000, and home health services and nursing care facilities added approximately 21,000 positions, according to BLS employment tables. In combination, these subsectors were responsible for a majority share of total payroll expansion.

“Although January’s stronger‑than‑expected job gains were a positive surprise, the concentration of hiring in health care means the labor market may still lack broad-based momentum,” says Mark Zandi, chief economist at Moody’s Analytics.

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Total nonfarm payrolls grew by 152,000 jobs in January, slightly below the roughly 180,000 forecast by many economists, according to the BLS report. Private-sector services showed varied results: Professional and business services added 41,000 jobs, leisure and hospitality contributed 35,000 and manufacturing posted a modest gain of 4,000 jobs. Government employment increased by 11,000 positions, including hiring at the state and local levels.

While the January data show healthcare employment expanding, the sector also experienced notable workforce reductions in 2025, primarily tied to financial pressures and cost-cutting measures. According to FierceHealthcare’s layoff tracker, several organizations announced staff reductions, including Providence, Oak Street Health and Blue Cross Blue Shield of Michigan, which offered voluntary buyouts as part of broader administrative cost containment efforts.

Healthcare wages and weekly hours also showed modest growth. Average hourly earnings in healthcare increased 0.4% in January, following a 0.3% rise in December, while average weekly hours held steady at 34.4, according to BLS.

The Department of Labor applauded the report, saying the January data reflects a “strong start to the year,” with private-sector hiring showing notable gains and ongoing efforts to support workforce development and training.

This article was originally published on BenefitsPRO, a sister site of HR Executive. For more content like this delivered to your inbox, sign up for BenefitsPRO newsletters here.

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