Healthcare Drives Arizona Job Growth

Arizona’s economy expanded last year, but healthcare providers are struggling to find enough staff to keep pace with the boom.

According to the Arizona Office of Economic Opportunity, the state added 22,700 jobs outside of agriculture between September 2025 and September 2026. Healthcare and social assistance contributed 12,500 of those positions. This sector represented more than half of the state’s overall job gains. Employment in this field grew by 2.6% over the year, a rate that matched the agency’s annual predictions.

Mike Renaud, president and CEO of Valle del Sol, said his organization increased its staff by 15% in the past year. He noted that the company still lacks enough clinical workers to meet current demand. Renaud said he would hire 20 physicians and 100 mental health therapists immediately if qualified candidates were available. He stated that the company would grow faster if it could find more people in the state to hire.

Doug Walls, the labor market information director at the Office of Economic Opportunity, attributed the rise in healthcare jobs to a growing and aging population. He said this demographic shift drives demand for more frequent and specialized services. Walls also noted that slower hiring in other industries has made healthcare a larger component of state job growth. He described the situation as a combination of both factors.

The agency projects that healthcare and social assistance will add 113,466 jobs between 2024 and 2034. This figure represents about a quarter of the state’s total job growth over that decade. These forecasts account for job losses and assume that employee turnover rates will remain stable as demand increases. However, industry leaders point out that finding new workers and preventing burnout are persistent challenges.

A 2023 report from the Greater Phoenix Chamber Foundation estimated that Arizona could face a shortage of 76,000 healthcare workers over the next decade. Dr. Daniel Derksen, director of the Arizona Center for Rural Health at the University of Arizona, said the state needs more residency slots for medical students. He noted that many graduates leave the state for training and do not return. Derksen suggested using loan repayment programs to encourage students from rural and tribal communities to pursue healthcare careers.

Mark Whalen, chief enterprise growth officer at Banner Health, said the nonprofit is investing in clinics and technology to give staff more time with patients. He acknowledged that finding the workforce to meet growing demand remains a key challenge. Todd Sanders, president and CEO of the Greater Phoenix Chamber, said the organization works with schools to prepare workers. He described the need for more talent as dire. Dr. Michelle Gourdine, chief medical officer at CVS Caremark, stated that access to care helps people stay healthy enough to work, linking health and economics.