Demand for Psychiatrists: Addressing the Shortage and Job Outlook

The mental health landscape in the United States is currently facing a significant challenge regarding care access. According to the 2024–2025 SAMHSA National Survey, 23.4 percent of adults aged 18 or older, which is roughly 61.5 million people, experienced some form of mental illness in the past year. Furthermore, about 5.6 percent of those adults reported a serious mental illness. This high prevalence of mental health conditions has created a massive need for specialized care that the current system is struggling to meet.

Currently, over 51,000 psychiatrists are practicing in the United States. Of those professionals, over 11,000 specialize in child and adolescent psychiatry, based on data from the American Academy of Child and Adolescent Psychiatry. Despite these numbers, the gap between patient needs and practicing psychiatrists is reaching a critical point. 

As of the January 15, 2026 update, the Health Resources and Services Administration (HRSA) projects a national shortage of 43,660 adult psychiatrists by the year 2038. This trend has already left many communities vulnerable. In December 2024, more than 122 million Americans lived in areas designated as Mental Health Professional Shortage Areas. The national psychiatrist-to-population ratio currently sits at one provider per 5,058 residents, which is far below the level required for adequate coverage.

The career outlook for psychiatry is among the most robust in the medical field. The Bureau of Labor Statistics reported that the average annual salary for a psychiatrist in 2024 was $269,120.  However, current trends in 2026 indicate that compensation packages are rising as healthcare systems compete for limited talent.

From 2024 to 2034, the August 2025 Employment Projections from the Bureau of Labor Statistics estimate a 6 percent growth in employment for psychiatrists. This will result in an estimated 1,700 new job openings. This steady growth ensures that the specialty will remain in high demand for the foreseeable next decade.

Aging Population: The current workforce is aging rapidly. About 60% of practicing psychiatrists are 55 or older, according to the Association of American Medical Colleges. Resulting in a massive wave of retirements to occur over the next decade.

Burnout: Physician burnout is a major contributor to the psychiatry shortage. Around 39% of psychiatrists reported experiencing burnout in the Medscape Physician Burnout and Depression Report 2024.

Limited Residency Spots: While the United States population has grown and the need for care surged during the pandemic, the number of residency slots has not kept pace. This creates a bottleneck where we simply cannot train new doctors fast enough to replace those who are retiring.

Psychiatrists currently make up about 70 percent of the total psychiatric workforce and tend to be more heavily concentrated in the Northeast United States. The Midwest and the South face more significant shortages, particularly in rural communities. Data shows that 65 percent of rural counties and 50 percent of all United States counties have no practicing psychiatrists at all.

To combat these gaps, certain states are offering significantly higher compensation to attract more psychiatrists. The most recent data from the U.S. Bureau of Labor Statistics shows North Dakota ($343,680) and Indiana ($327,760 ) provide some of the highest average annual salaries.

Expanding Residency Programs: Congress has introduced H.R.4731, also known as the Resident Physician Shortage Reduction Act of 2025. This legislation aims to add Medicare-supported residency slots. If it passes, the bill would create 14,000 new residency training slots for both primary and specialty care, including psychiatry. The American Hospital Association is among the many industry leaders expressing their support for the bill’s passage to help tackle the physician shortage.

Telepsychiatry: Digital health platforms allow providers to reach patients in rural "deserts" without requiring a physical office in that location. According to research published in February 2026 in Annals of Internal Medicine, mental health visits have become the primary driver of virtual care. Each year, an estimated 31 million mental health visits are now conducted remotely, surpassing the 29 million telehealth visits for all other non-behavioral health reasons combined.

FAQ:

What psychiatry subspecialties are in the highest demand?

The most recent data shows that child and adolescent psychiatry, geriatric psychiatry, and addiction psychiatry are the most in-demand psychiatric subspecialties.

What states have the highest compensation for psychiatrists?

According to the most recent Bureau of Labor Statistics data, the five states with the highest average annual salary for psychiatrists are:

Where are most psychiatrists employed? 

According to the most recent BLS data, most psychiatrists work in physician offices, general medical hospitals, psychiatric and addiction hospitals, outpatient care centers, or for state government agencies.

 
Ready to take the next step in your psychiatric career? Explore Psychiatry jobs on PracticeSeeker today.