Residential mental health and substance abuse facilities

Industry Insight

The Residential mental health and substance abuse facilities industry is classified under NAICS code 623220 and employed approximately 264,300 workers in 2024 according to the Bureau of Labor Statistics Employment Projections program. By 2034, BLS projects employment will reach 292,400 — a net change of +28,100 jobs over the decade. That works out to a +10.6% projected growth rate, among the stronger expansion stories in the US labor market.

NAICS 623220 sits within a broader sector ecosystem whose health depends on demographic trends, technology adoption curves, and policy decisions on immigration, tax incentives, and labor regulation. The occupation mix inside Residential mental health and substance abuse facilities determines how AI displacement risk filters down to individual workers — industries dominated by clerical and routine analytical roles face the steepest exposure, while those anchored in physical skill, patient care, or creative judgment retain stronger resilience. The growth outlook makes this industry an attractive target for career changers, training investments, and regional economic development.

Use this industry profile alongside our occupation rankings and employer AI risk grades to build a full picture. The BLS publishes detailed wage and employment figures for each sector in its Occupational Employment and Wage Statistics and Employment Projections programs. The BLS Employment Projections methodology blends input-output modeling, productivity forecasts, and occupational staffing patterns, so estimates are directional rather than precise, and industry-level outcomes depend heavily on macroeconomic conditions that evolve between projection cycles.