Healthcare Staffing Report: April 12, 2018

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US healthcare and social assistance hires up 36% since 2010 while job openings more than double

Staffing Industry Analysts’ Healthcare Staffing Growth Assessment report highlights the remarkably challenging recruiting environment confronting staffing firms. 

Since 2010, as the economic recovery began and concurrent with the passage of the Affordable Care Act, monthly hires increased 36% from an average of 416,000 in 2010 to an average of 564,000 in 2017. The chart below shows that, in the same period, monthly openings increased 119% from an average of 477,000 in 2010 to an average of 1,047,000 in 2017. These trends highlight the growth in demand and shrinking supply of candidates.

During the period 2010-2017, as economic conditions improved, unemployment dropped from 9.9% to 4.1%, according to the US Bureau of Labor Statistics. As utilization increased, hospitals and provider organizations increased their hiring, but demand increased faster than the supply of applicants resulting in the widening gap between openings and hires. 

Per the Federal Reserve, 5.0% to 5.2% is considered full employment. Therefore, given the current environment of high demand and short supply, competition among employers is likely to intensify as candidates view their prospects more favorably. As a result, contingent labor will continue to act as a needed source of workers for hospitals and provider organizations, as they struggle to keep up with compliance requirements and volume demands.

Based on these trends, SIA’s past forecast had projected 6% growth in the US temporary healthcare staffing market for 2018. However, the forecast was made last September, and SIA will soon be releasing a new update this month. 

US Healthcare and Social Assistance: Openings & Hires (000s) (Seasonally adjusted)

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