The long-term care sector saw a glimmer of positive employment news in July, with skilled nursing facilities and continuing care retirement communities (CCRCs) adding a combined 3,100 jobs. However, this modest gain comes as the overall U.S. economy’s hiring stalls, with substantial downward revisions to previous months’ job reports.
According to the Bureau of Labor Statistics’ (BLS) Employment Situation Summary, skilled nursing facilities added 2,000 jobs, while CCRCs and assisted living communities added 1,100. This contributed to a broader upward trend in the healthcare sector, which accounted for the vast majority of the 73,000 jobs added to the economy last month.
The nursing home industry, in particular, continues to grapple with a persistent workforce crisis. A recent survey of CFOs by Ziegler found that staffing shortages have led to providers limiting admissions—a practice seen in 25% of single-site communities. This trend highlights the ongoing struggle to recruit and retain essential staff, particularly Certified Nursing Assistants (CNAs), Licensed Practical Nurses (LPNs), and Registered Nurses (RNs). CNA turnover, for example, is at an average of 44.2%.
“Amid an evolving labor landscape, rising costs, and growing care demands, the senior living sector continues to face considerable obstacles in attracting, retaining, and supporting its staff,” the Ziegler survey noted.
The challenge is further compounded by a national nursing shortage. A 2025 study by Vivian Health revealed a projected national deficit of about 295,800 nurses this year, falling within the range predicted by a 2022 McKinsey & Company report. While the nursing workforce has shown some recovery, the demand for care continues to outpace the supply of qualified professionals.
Addressing the Workforce Challenge
In an effort to stabilize their workforces, long-term care providers are implementing a variety of strategies. According to the Ziegler survey, 78% of respondents cited promoting a positive workplace culture as a top strategy, while 77% are raising wages and offering bonuses. Expanding internal training and career pathways is also a key focus for many.
These initiatives are crucial as new federal staffing requirements loom. The Centers for Medicare & Medicaid Services (CMS) has a final rule that, when fully implemented, will require nursing facilities to have a minimum of 0.55 Registered Nurse (RN) hours per resident day and 2.45 nurse aide hours per resident day, in addition to an overall total of 3.48 hours of care per resident per day. A recent analysis by KFF estimated that only 19% of nursing facilities currently meet all three of these requirements.
The new regulations will necessitate significant hiring efforts for the industry, which is already struggling to compete with hospitals for talent. According to CMS estimates, facilities will need to hire approximately 16,000 RNs and 35,306 nurse aides to meet the new standards.
As providers work to comply with these regulations, the focus on staff retention and recruitment will only intensify. The long-term care industry must find sustainable solutions to its workforce challenges to ensure it can meet the growing needs of an aging population.
