Healthcare Jobs Have Been A Boost To The Economy. But Not For Long

Healthcare jobs that have driven U.S. job growth for sometime now are being threatened by massive cuts in reimbursement from the Trump administration and the Republican-led Congress.

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Healthcare jobs that have driven U.S. job growth for sometime now are being threatened by massive cuts in reimbursement from the Trump administration and the Republican-led Congress.

A new report Monday from KFF paints a picture of healthcare employment that is likely to slow considerably after its growth has outpaced hiring in all other industries from manufacturing to retail. “Since September 2025, the healthcare sector has added 372,000 jobs (up 2%), while the overall non-farm economy apart from the healthcare sector gained 124,000 jobs (up 0.1%),” the KFF report said.

But the hiring is poised to slow due in part to artificial intelligence and major cuts to reimbursement, particularly from the One Big Beautiful Bill Act that President Trump signed into law last year. That legislation is projected to reduce federal spending on Medicaid insurance for poor Americans by about $1 trillion over a decade.

“Declines in revenue and patient demand could cause tightening in the healthcare workforce in the coming years,” KFF’s analysis said.

Already, health insurers, hospitals and other healthcare systems have been slashing jobs in part due to prepare for cuts in reimbursement. Earlier this year, for example, the health insurer Centene, confirmed plans to offer companywide buyouts to most employees. Like other health insurers, Centene has been working to reduce administrative costs and other expenses.

Centene, which sells individual coverage under the Affordable Care Act, also known as Obamacare, and administers Medicaid coverage for several states, disclosed its buyout plan after after losing more than two million Obamacare health plan members. The Trump administration and the Republican-led Congress didn’t renew enhanced subsidies to keep Obamacare affordable for millions of Americans.

Health insurance companies are bracing for major losses of government-subsidized customers who will no longer be able to afford coverage.

“The Congressional Budget Office projects the number of people without health insurance will rise by over 10 million from 2025 to 2036 because of policy changes to the ACA and Medicaid, and some healthcare settings may see a drop in demand and/or an increase in uncompensated care as a result,” the KFF report says.

Hospitals and health systems are reporting an increase in the number of unpaid medical bills from patients who can’t afford healthcare services. And this will hurt medical care provider revenue.

“These revenue strains may place an especially strong squeeze on hospital revenues and their employees, because hospitals are legally mandated to treat and stabilize emergency patients regardless of their ability to pay,” KFF said in its report. “The impact of these policy changes on health sector employment, and how they stack up against the forces driving increasing utilization, remains to be seen.”