The Health Care & Social Assistance industry dominates Southeast Minnesota, accounting for over a quarter (27.3%) of total employment—the highest concentration of any planning region across the state in 2023. There were 1,982 firms in the Health Care & Social Assistance industry, providing an average annual wage of $83,460, which was $20,000 higher than the average annual wage across all industries in the region (see Table 1). Total payroll in the industry topped $5.54 billion, the highest payroll of all industries in the region.

Among the three main health care subsectors, Ambulatory Health Care Services leads with 33,770 jobs across 500 firms, offering the highest average annual wages at $109,148. This would include Offices of Physicians, Offices of Dentists, Other Healthcare Practitioners, and Home Health Care Services. Hospitals follow with 15,509 jobs in 23 firms, providing average annual wages of $81,432. Nursing & Residential Care Facilities have the fewest jobs, with 10,613 jobs with 288 firms, and offer the lowest average annual wages at $37,752.

Over the past year, the Health Care & Social Assistance industry has added 916 jobs, representing a 1.4% increase, slightly below the overall regional growth rate of 1.5% across all industries. Of the subsectors, Ambulatory Health Care Services saw the largest job gains, with an increase of 688 jobs, followed by Hospitals, which added 168 jobs, and Nursing & Residential Care Facilities, which added 167 jobs.

Employment in the Health Care & Social Assistance industry has recovered all jobs lost due to the pandemic and now has the highest number of jobs ever recorded in Southeast Minnesota. Two of the three subsectors have experienced job gains since 2019. Hospitals have seen the most significant increase, adding 717 jobs, a 4.8% rise. Ambulatory Health Care Services gained 590 jobs, reflecting a 1.8% expansion. Within this subsector, the largest gains were in Offices of Physicians, which added 519 jobs. Conversely, the Home Health Care Services industry group has lost 347 jobs since 2019, a 29% decrease in employment, with further losses from 2022 to 2023.

The Nursing & Residential Care Facilities subsector has faced substantial job losses, with a decrease of 986 jobs, an 8.5% decline since 2019. Within this subsector, Nursing Care Facilities (Skilled Nursing Facilities) experienced the largest job losses, with a reduction of 1,293 jobs, a 23% decrease. This was followed by Residential Intellectual & Developmental Disability, Mental Health & Substance Abuse Facilities, which lost 294 jobs, a 10.5% decrease. Some of that employment simply shifted over to the Continuing Care Retirement Communities & Assisted Living Facilities for the Elderly, which added 664 net new jobs from 2019 to 2023 as people changed where they are being cared for.

With substantial and growing employment in the Health Care & Social Assistance sector in Southeast, there were numerous job vacancies in 2023. Specifically, there were 964 job vacancies ( 3.1% vacancy rate) for Healthcare Practitioners & Technical occupations, offering a median wage of $33.92, which was more than $15.50 higher than the median wage across all occupations. Of these vacancies, only 18% were part-time, compared to 27% across all occupations. Almost all (93%) of these positions required postsecondary education, 66% required at least one year of experience, and 97% required a certificate or license.

The occupations with the most job vacancies include Registered Nurses (277 job vacancies), Licensed Practical & Licensed Vocational Nurses (123 job vacancies), and Clinical Laboratory Technologists and Technicians (59 job vacancies) (see Table 2).

With 1,534 job openings, Healthcare Support occupations had a job vacancy rate of 10.9%, much higher than the overall rate of 5.7%, highlighting strong demand for these roles. These vacancies offered a median wage of $16.49 per hour, and 30% were part-time positions. In contrast to Healthcare Practitioners, only 17% of these jobs required postsecondary education, and just 7% required a year or more of experience, making them accessible to job seekers looking to enter the Health Care industry. The specific occupations with the most job vacancies include Personal Care Aides (1,282 job vacancies), Nursing Assistants (115 job vacancies) and Home Health Aides (51 job vacancies).

With substantial and growing employment in the Health Care & Social Assistance sector in Southeast Minnesota, projections indicate continued growth from 2020 to 2030. The Health Care & Social Assistance industry is expected to add 5,837 jobs, representing a 9% increase. This growth rate surpasses the overall industry employment increase of 5.1%, highlighting a higher demand in the region for health care services and occupations.

The Health Care & Social Assistance industry plays a vital role in Southeast Minnesota's economy by driving employment and offering competitive wages. As the industry expands, numerous health care jobs are readily available for jobseekers. The growing need for health care services emphasizes the importance of developing and retaining a skilled workforce in this crucial industry.

For more information about health care careers in Southeast Minnesota, contact Amanda O'Connell at amanda.oconnell@state.mn.us.