A surge in demand for Covid care during the pandemic more than offset a decline in demand from shutdowns and fewer elective surgeries, according to SIA’s “US Healthcare Staffing Market Assessment: 2021 Update” released April 27.  But the report expects demand for Covid care to mostly abate by the end of this year and anticipates the healthcare staffing market will decline next year.

SIA estimates the healthcare segment of the US temporary staffing market grew 8% last year to $19.9 billion; it is projected to grow 7% to $21.3 billion this year and then decline 7% to $19.8 billion in 2022.

“The January peak in Covid, followed by lingering Covid cases, combined with a recovery in non-Covid care, has fueled demand for healthcare staffing in the first half of 2021,” the report states. “We anticipate a market decline in 2022, with less volume from Covid care (and fewer crisis wages), and with most non-Covid care expected to have already recovered by then.”

Of the four sub-segments of healthcare staffing — travel nurse, per diem nurse, locum tenens and allied health — travel nursing has experienced the most demand from the pandemic, and the locum tenens category has declined the most due to the pandemic. For most locum specialties, Covid care has not offset the effect of shutdowns and fewer elective surgeries. As the pandemic is expected to have mostly unwound by next year, SIA projects the locum tenens market to grow the most in 2022 and for the travel nurse market to decline the most.

US temporary healthcare staffing market growth rate

The report also notes that some positive effects of the pandemic on healthcare staffing may stick, such as increased acceptance of multi-state licensing and more use of technology. However, recruiting in nurse staffing remains challenging despite an influx of new nurses. The 2020 average unemployment rate for registered nurses was 2.4%, compared to a national unemployment rate of 7.8%, though that does not account for recent nursing school graduates who have not before worked as a nurse.

“In the first few months of the pandemic, openings dropped starkly and hires surged, briefly surpassing openings,” the report states. “Then there was a quick reversal, and now the gap is wider than ever.”

SIA’s corporate members can access the full report online.