North Raleigh Today

The healthcare sector's demand for workers continues to increase, even as the broader job market experiences a slowdown from the growth seen during the COVID-19 pandemic. In 2024, private-sector healthcare made up 45% of all job gains nationwide, while in North Carolina, 20,500 healthcare jobs were added, accounting for 43% of the state's total job growth.

However, this growth period also highlights challenges, as healthcare employers face hiring difficulties and labor shortages. According to a recent installment in a blog series, Michael Hogan, State Labor Economist at the North Carolina Department of Commerce, noted, "While data on job openings offer key insights into the ongoing workforce challenges that employers face, surveys provide the additional perspective of what's driving decision-making on the part of employers.”

During the early COVID-19 pandemic, healthcare employees dealt with significant stress and job reductions. Since 2022, the sector has rebounded, marking increased job openings as preventative and elective medical procedures resumed. By the end of 2024, healthcare support occupations had openings 35% above pre-pandemic levels, whereas healthcare practitioners and technical occupations were 31% higher.

Healthcare employers continue to face labor shortages in North Carolina, with just 0.5 jobseekers per job opening for healthcare practitioners and 0.2 for support occupations in 2024. Although hiring has become somewhat easier, many employers still report persistent challenges. According to a 2024 Employer Needs Survey, 61% of healthcare employers struggled to hire over the past year, with issues including a lack of employability skills, a low number of applicants, and inadequate work experience or education.

Salary disputes also hinder hiring efforts, with 52% of employers stating that wage offers do not meet expectations, particularly in more experienced roles. Additionally, 38% of employers mentioned childcare as a barrier for entry-level position applicants, a significant issue given the high number of female workers in the healthcare sector.

In response to these challenges, healthcare employers might turn to automation and artificial intelligence (AI). According to Erica Holland, a labor market analyst, "Survey findings provide mixed evidence on the role of AI and automation in healthcare; many employers rely on increasing wages rather than AI." Nationally, healthcare AI adoption is low, with only about 6% of organizations employing such technologies. Limitations include the necessity for human interaction in healthcare and ethical concerns.

Some healthcare employers are raising salaries to attract talent, as 74% have increased wages for new hires, and 64% have done so for existing workers. The future application of AI in healthcare to alleviate workforce shortages remains uncertain, but the sector is observing and may adapt as technology and labor conditions evolve.