AI-generated illustration; not a photograph of the reported event.
- calendar_today October 27, 2026
Healthcare Jobs Lead Arizona's Employment Growth
The healthcare industry has become a significant driver of job growth in Arizona, accounting for more than half of the 22,700 non-agricultural positions added between September 2025 and September 2026. Employers, however, are finding it increasingly challenging to keep up with demand for qualified professionals.
Employers Struggle to Meet Healthcare Demand
Mike Renaud, president and CEO of Valle del Sol, which provides primary and behavioral healthcare in the state, described the critical need for staff. While Valle del Sol expanded its workforce by 15% over the last year, Renaud noted that he would hire 20 physicians and 100 mental health therapists immediately if enough qualified candidates were available. "We would grow faster, but we don’t have enough of the clinical people here in Arizona to hire," Renaud explained.
Job Growth Driven by Demographic Change
Doug Walls, labor market information director at Arizona’s Office of Economic Opportunity (OEO), cited Arizona’s growing and aging population as a key factor driving healthcare demand. This demographic trend increases the need for both more frequent and more specialized healthcare services. Simultaneously, slower hiring in other industries has boosted healthcare’s share of total job growth in the state.
Between September 2025 and September 2026, Arizona’s healthcare and social assistance sector grew by 2.6%, matching the OEO’s annual projection. Looking ahead, the agency expects the sector to add 113,466 jobs between 2024 and 2034, representing about a quarter of overall state job growth.
Staffing Shortages and Burnout Persist
Despite these gains, long-standing challenges such as staffing shortages and employee burnout remain. Mark Whalen, chief enterprise growth officer at Banner Health, confirmed that finding workers is a persistent difficulty. Investments in clinics and technology are aimed at freeing up time for medical staff but have not resolved underlying workforce issues.
The Greater Phoenix Chamber Foundation’s 2023 workforce report projects that Arizona may face a shortage of approximately 76,000 healthcare workers over the next decade. Dr. Daniel Derksen, director of the Arizona Center for Rural Health at the University of Arizona, emphasized that expanding residency opportunities is vital for retaining future doctors in the state, as many leave for out-of-state training and do not return.
The Role of Training and Education Initiatives
Efforts to increase the healthcare workforce include loan repayment programs targeting rural and tribal students, as well as expanded training opportunities. The OEO’s 2025 review of ARIZONA@WORK adult training programs found that those who completed health-related training were more likely to secure employment: for every 100 participants, about 14 more found work compared to those who did not finish or enroll in training. Still, it remains unclear if such programs fully meet employer needs.
The Greater Phoenix Chamber Foundation collaborates with educational institutions to prepare the future workforce. Todd Sanders, president and CEO, stated, "There is a dire need for more talent, and we are squarely focused on that."
Medicaid Changes and Financial Barriers
Financial constraints further affect healthcare hiring, particularly in rural areas. Dr. Derksen noted that cuts or changes to Medicaid could lead to additional pressures, as hospitals and clinics may shoulder more unpaid patient bills. Beginning in January 2027, changes to Arizona’s Medicaid program will require some adults to meet work requirements and recertify their eligibility biannually, potentially impacting access and revenue streams.
Dr. Michelle Gourdine, chief medical officer at CVS Caremark, highlighted at a recent economic outlook event that access to healthcare is closely tied to overall economic productivity. "Health and economics are deeply interconnected," she said, noting the broader impacts that arise from a healthy, employed workforce.
Looking Ahead: Addressing Healthcare Staffing Challenges
Arizona’s robust job growth in healthcare underscores the sector’s importance both economically and socially. However, addressing ongoing staffing shortages, expanding medical training programs, and managing the effects of Medicaid policy changes will be crucial to sustaining this momentum and meeting the healthcare needs of Arizona’s growing population.
Source: azcapitoltimes.com.
