Jobs Report 2025: What It Means for Mental Health and Substance Use Roles
- jameliahand
- Aug 19
- 3 min read
By Jamelia Hand MHS CADC CODP I
"When the clinic launched its new outpatient recovery program, Jamie (a former counselor turned program coordinator) felt a renewed sense of purpose. But when the July jobs report came in showing only 73,000 jobs added nationwide, she braced for tightening funding and higher burnout risks for the team."
What the July 2025 Jobs Report Reveals
The U.S. economy added just 73,000 jobs in July, far below expectations and marking the weakest pace since the pandemic. May and June figures were also revised downward by a combined 258,000 jobs, indicating the labor market is much softer than initially reported.
Unemployment held steady at 4.2 percent, but the number of people who are long-term unemployed rose. This signals more workers are staying jobless for extended periods, raising concern about the overall health of the labor market.
Despite these struggles, health care and social assistance continued to expand, with ambulatory services, home health, dental practices, and physician offices among the strongest in hiring. In contrast, federal health agencies such as HHS and the VA are undergoing mass layoffs as part of government reorganization, cutting deeply into roles that support mental health and recovery programs.
Implications for Substance Use and Mental Health Careers
1. Demand remains strong- Employment growth for substance abuse, behavioral disorder, and mental health counselors is projected to rise 18 percent through 2032, with about 42,000 openings annually. Outpatient settings in particular have seen job growth, showing strong signals for community-based care.
2. Workforce shortages and disparities persist- Over 169 million Americans live in Mental Health Professional Shortage Areas (MHPAs). Rural regions face the sharpest gaps, with more than half of counties having no psychiatrist, psychologist, or social worker at all. Staff turnover is also high, with 33 percent of clinicians and 23 percent of supervisors leaving their jobs each year. Combined with relatively low pay, substance abuse counselors average around $34,000 annually. Retention remains a pressing issue.
3. Stress and burnout are rising- The American Psychological Association reports that 63 percent of employees say their job significantly contributes to their stress. Nearly half of workers worry that disclosing mental health concerns could harm their career advancement. Even in health-focused fields, only 34 percent of employees feel their job positively impacts mental health, while a third report the opposite.
4. Budget cuts threaten infrastructure- Large-scale federal layoffs across HHS and VA are straining the public safety net for mental health and addiction services. Medicaid cuts are expected to worsen access, especially in rural America where services are already scarce.
What This Means for Career Paths
Opportunities in behavioral health are expanding, particularly in outpatient and community settings. Job forecasts show strong growth and long-term career stability, but the field continues to face shortages, funding challenges, and rising stress among its workforce. Entering this field means stepping into a high-demand, high-impact career, but one that requires resilience and strong support systems to prevent burnout.
Closing Story
Jamie’s outpatient recovery program is more vital than ever, yet she faces longer waitlists and uncertain funding. For her and her colleagues, every new hire represents more than just a statistic, it means another patient has a chance to reclaim their life.
How Vantage Can Support You
Career Pathways & Training: Guidance for credentialing and career development in substance use and mental health roles.
Workplace Wellness Tools: Strategies to help clinicians and organizations reduce burnout and strengthen support systems.
Advocacy & Thought Leadership: Vantage drives policy and community engagement to push for stronger investment in the workforce.
In summary
The July 2025 jobs report highlights a slowing U.S. labor market, but mental health and substance use roles continue to grow. For those entering this field, it means opportunities to make a lasting impact are abundant, even as challenges like funding, shortages, and burnout persist.