The Bureau of Labor Statistics recently released its latest 10-year projections of employment growth (from 2016 to 2026), with forecasts by various industries and occupations. Overall, employment is expected to grow 7.4%, far outpaced by employment in the healthcare industry (18%) and among healthcare occupations (18%).
The broader theme is that employment in the healthcare industry is projected to grow 18%, far outpacing the projected 7% growth for overall employment. However, behind the 18% growth is substantial variation among the three categories that make up the healthcare industry. The first, ambulatory healthcare services, is projected to surge by 31%. The second, nursing and residential care, is projected to grow 13%, and the third, hospitals, is only projected to grow 6.8% (less than the 7.4% projected for overall employment noted above). Therefore, for healthcare staffing firms primarily doing business with hospitals, the latest report from BLS may not be as rosy as it appears at first glance.
Growth by healthcare occupations is 18%, similar to that for the healthcare industry. The two major categories making up 18% growth are “healthcare practitioners and technical occupations," with growth of 15%, and “healthcare support occupations," with growth of 23%. Some of the occupations within the first category include registered nurses (15%), physicians and surgeons (15%), physical therapists (25%) and nurse practitioners (36%). Some of the occupations in the latter category include home health aides (47%), medical assistants (29%) and physical therapist assistants (31%). BLS noted that healthcare occupations are projected to contribute about one-fifth of all new jobs by 2026, driven by factors such as the aging baby-boom population, longer life expectancies, and growing rates of chronic conditions. While clearly most healthcare occupations have a bullish outlook, staffing firms should note that there are exceptions. For example, employment of respiratory therapy technicians is expected to decline by 56% from 2016 to 2026.
All in all, healthcare should be a good environment for staffing demand in the long-term, but some areas are expected to have a rosier outlook than others.
