Running a successful independent veterinary practice involves more than just providing excellent clinical care. You also must manage people, schedules, and finances.
Understanding labor and workforce dynamics is key to your business and operations: knowing where veterinarians and staff are available, how wages compare, and how economic trends affect client spending can mean the difference between a fully staffed, thriving clinic and one struggling to keep up. In a market where talent is unevenly distributed and client budgets fluctuate, staying ahead of workforce trends isn’t optional — it’s essential.
When discussing labor and workforce dynamics, it’s helpful to look at the national economy.
Historically, the veterinary industry has lagged a year with regards to national unemployment changes, but overall the veterinary unemployment rate has been low, even while a subset of veterinarians have opted to not participate in the labor force for one reason or another, according to the 2025 AVMA State of the Veterinary Profession Report.
Low unemployment doesn’t mean veterinarians are available where or when clinics need them, it just means most who want jobs already have them. The constraint shows up in maldistribution.
Over the past several years, the veterinary industry has often been described as facing a “workforce shortage.” In reality, it’s more about distribution. Many new graduates tend to seek opportunities in larger metropolitan areas, where salaries and lifestyle amenities are often more attractive — a pattern that aligns with broader workforce trends across health professions. For example, new veterinarians often weigh factors such as compensation, mentorship, work-life balance, and location, and for those facing significant loan repayments, incentives like signing bonuses or loan assistance can be especially appealing, even if those opportunities are concentrated in certain areas or settings.
This creates the appearance of a shortage, but the problem is really a misalignment: veterinarians aren’t always in the locations where they’re most needed.
National employment trends play a key role as well in understanding direction of the veterinary labor market, even if it isn’t perfect. Veterinary workers – and customers – respond the same way as everyone else. When unemployment rises, disposable income declines, and households prioritize essential spending. For example, a study by the Federal Reserve found that in 2023, 19% of adults reported a decrease in monthly income, with 22% experiencing a decrease in spending. This suggests that economic downturns, including rising unemployment, can lead to reduced disposable income and altered spending patterns
Veterinary services often fall into the “non-essential” category, making these economic indicators critical for practice owners. Historical recessions demonstrate how rising unemployment and reduced hiring can impact client budgets, which in turn affects veterinary service demand.
The broader U.S. labor market serves as a useful gauge: fewer jobs or lower income generally translates to less discretionary spending on veterinary care.
For those looking for reliable data on employment levels, wages, and compensation trends, the Bureau of Labor Statistics (BLS) is the primary resource for U.S. labor data. Key tools include:
- Occupational Employment and Wage Statistics (OEWS): Annual employment and wage estimates for over 800 occupations across the nation, states, and metropolitan areas, including veterinarians.
- Current Employment Statistics (CES): Detailed industry estimates of nonfarm employment, hours, and earnings of payroll workers, including veterinarians.
- Employment Cost Index (ECI): Measures changes in labor costs, including wages and benefits, independent of shifts among occupations and industries. Not veterinary specific, but still useful.
- Civilian Unemployment Rate: Captures the percentage of the civilian labor force that is actively seeking work but unable to find it.
- Employment Trends Index (ETI): Tracks overall labor-market momentum using multiple employment indicators, helping interpret how broader hiring trends may influence veterinary workforce conditions.
- Help Wanted Online (HWOL): Measures real-time online job postings across the U.S., providing insight into overall hiring demand and labor-market tightness across industries.
By monitoring both workforce distribution within the veterinary sector and broader economic trends — and using resources like the BLS — practice owners can better anticipate challenges, plan strategically, and ensure they are positioned to meet client demand effectively.
How to Use these Key Economic Indicators
Step 1: Monitor Employment Trends
Keeping an eye on national and local unemployment rates helps practices understand the broader labor market. Tracking consumer spending trends can also provide insight into potential shifts in client demand for veterinary services.
Step 2: Benchmark Compensation & Costs
Using wage and labor cost data allows practices to remain competitive in attracting and retaining talent. It also supports more accurate budgeting and financial planning for salaries and benefits.
Step 3: Align Staffing with Demand
Forecasting client needs enables practices to adjust hiring, scheduling, and task allocation proactively. This ensures the clinic can meet demand efficiently while minimizing overstaffing or burnout.
In today’s complex labor market, veterinary practices that actively track workforce trends, benchmark compensation, and align staffing with client demand are better positioned to navigate challenges and seize opportunities. By combining national labor data with local insights, clinics can make informed decisions that strengthen their teams, optimize operations, and ensure high-quality care for their clients — regardless of economic fluctuations.
Further Reading:
Navigating the veterinary practice hiring landscape: Trends and best practices
Four Artificial Intelligence Tools to Improve Your Practice’s Efficiency
Save Time, Improve Patient Care, and Increase Practice Performance with Better Staff Utilization
