Healthcare Hiring Slowdown: What the Latest Data Reveals
Recent analysis from Indeed’s Hiring Lab indicates a cooling trend in the healthcare labor market. Although still above pre-pandemic levels, wage growth is slowing across most healthcare categories, and job postings are experiencing year-over-year declines. This shift signals a potential turning point after a period of intense demand driven by the COVID-19 pandemic.
Wage Growth Trends: A Mixed Picture
December 2025 data shows that while most healthcare roles still offer wages exceeding the overall labor market average of 2.1%, the rate of growth is decelerating. Personal care and home health, dental, childcare, and therapy roles are leading the way in wage increases. However, medical technicians and nursing positions are lagging, with wage growth at 2% and 1.2% respectively.
Notably, dental roles are an exception to the broader slowdown, maintaining flat wage growth over the past six months. Other categories experienced declines, with medical technician wages falling by 1.2 percentage points and nursing wages decreasing by 0.9 percentage points during the same period.
Job Posting Dynamics: Above Baseline, But Declining
As of January 23, 2026, job postings across the healthcare sector remain approximately 4.4% above the February 1, 2020, baseline. However, this represents a 5.9% decrease compared to the same period in 2025. This suggests a stabilization, but not expansion, of hiring activity.
Hot and Cooling Roles
Certain healthcare specialties are demonstrating more resilience than others. Therapy and physician/surgeon roles are currently up 88.4% and 84.1%, respectively, from pre-pandemic levels, although both experienced slight year-over-year declines (0.5% and 0.9%).
Pharmacy is the only category showing increased job postings year-over-year, with a 4.2% rise and postings 27.6% above the February 2020 baseline. Conversely, medical technician and nursing roles are experiencing more significant declines, down 9.3% and 9.8% year-over-year, respectively, despite remaining above pre-pandemic levels (23.7% and 7.6%).
What’s Driving the Shift?
Several factors likely contribute to these trends. The initial surge in demand for healthcare workers during the pandemic is subsiding. Broader economic conditions, including revisions to 2025 data making an already challenging year worse, are impacting hiring across all sectors. The Indeed Hiring Lab’s January 2026 report also noted that jobs mentioning AI are growing amid broader hiring weakness, suggesting a potential shift in skill demands within the healthcare industry.
Frequently Asked Questions
Is the healthcare job market still strong?
Yes, but it’s cooling. While job postings and wages remain above pre-pandemic levels, the rate of growth is slowing down.
Which healthcare roles are in highest demand?
Currently, pharmacy and therapy roles are showing the strongest demand, with postings above both pre-pandemic and year-over-year levels.
What does this mean for healthcare workers?
Healthcare workers may find it more competitive to secure positions and negotiate salaries compared to the peak of the pandemic. Upskilling and focusing on in-demand specialties could be beneficial.
Explore further: For more in-depth analysis of the US labor market, visit the Indeed Hiring Lab. You can also find current lab healthcare job openings on Indeed.
What are your thoughts on these trends? Share your insights in the comments below!
