Journal of Phoenix
Economy & Employment

Healthcare Sector Officially Overtakes Retail in Maricopa County

Driven by massive campus expansions at Mayo Clinic and Banner Health, specialized medical roles are now the dominant force in the local labor market.

By Linda Vance · May 18, 2024 · 7 min read

For decades, Phoenix's employment narrative was defined by housing, retail, and hospitality. But according to the latest Bureau of Labor Statistics data, "Education and Health Services" has permanently decoupled from the pack, establishing itself as the undisputed king of the Maricopa County labor market.

The Mayo Clinic Effect

The catalyst for this shift is the "Discovery Oasis," a 120-acre biotechnology corridor adjacent to the Mayo Clinic campus in North Phoenix. This $748 million capital expansion isn't just adding hospital beds; it's incubating clinical research, biomedical engineering, and med-tech manufacturing.

Sector Total Employed (April 2024) 5-Year Growth
Health Services & Biotech 392,400 +22.4%
Retail Trade 341,200 +4.1%
Construction 165,800 +14.2%

The Ripple Effect on Real Estate

This demographic shift brings a highly compensated, stable workforce to the Valley. Medical professionals require Class-A medical office buildings (MOBs), which currently boast the lowest vacancy rate (8.2%) of any commercial asset class in the metro area.

Frequently Asked Questions

Are we facing a nursing shortage?
Yes. Despite the massive growth, the state nursing board projects a shortfall of 28,000 registered nurses by 2025.
Where is the biotech growth concentrated?
The primary nodes are North Phoenix (Mayo/Discovery Oasis), the Phoenix Medical Quarter (Midtown), and the nascent medical district in Goodyear.