Healthcare staffing demand has seemed a dichotomy amid the Covid-19 outbreak, with near unfillable demand for some roles while others face layoffs and furloughs. But months into the pandemic, healthcare employment is showing signs of stabilization.
SIA this week released its US Staffing Industry Forecast: July 2020 Update report. Based on additional data and analysis, the report upgrades the 2019 revenue growth estimate for healthcare staffing to 7% from the prior 4% estimate published in April. The improvement was driven by upgraded 2019 growth estimates for travel nurse (to 12% from 6%), per diem nurse (to 3% from 2%) and allied healthcare (to 8% from 4%).
In contrast, SIA downgraded its 2020 outlook for the healthcare sector to a 3% decline from the previous forecast of 1% growth. The downgrade was driven by a lowered outlook for per diem nurse to a 5% decline instead of 4% growth and locum tenens to a 5% decline instead of 5% growth. The lowered outlook was driven by reduced elective surgeries and procedures, fewer emergency department visits, and the temporary closure of many doctor offices and clinics.
On the bright side, the new report maintains SIA’s 5% growth forecast for travel nursing this year, making it one of only two segments of the staffing industry expected to have positive revenue growth in 2020.
Despite softer demand this year, SIA forecasts positive growth in 2021 across all four healthcare subsegments, as the sector recovers from the pandemic.
In addition, SIA’s June Pulse Survey found healthcare staffing remained the lone bright spot, with travel nurse revenue up a median 21% year over year in May, allied healthcare up 11%, locum tenens up 10% and per diem nursing up 6%. All other skill segments of staffing reported revenue declines in May, led by a 29% year over year decline in the industrial sector.
Corporate members of SIA can download the June Pulse Survey Selected Findings report here. To receive the full July Pulse Survey report of results, staffing firms with US operations are invited to participate in the survey here.
Healthcare jobs uptick
Monster notes healthcare job postings on its site seem to be returning to normal, with an uptick in registered nurse jobs and medical and health services managers hitting pre-Covid levels of job postings. Opticians, optometrists, physician assistants and phlebotomists have all seen an increase in new job postings — surpassing pre-pandemic levels — according to the jobs portal’s data from June 22 to June 28.
Healthcare employment continued to recover from the initial pandemic hit with an increase of 358,000 jobs in June from May, the US Bureau of Labor Statistics reported last week. Hospitals posted a gain of 6,700 jobs last month, after declining by 26,700 in May.
Job gains in June also included 190,400 in dentists’ offices, 80,000 in physicians’ offices and 47,500 in offices of other health practitioners. However, job losses continued in nursing care facilities.
Although signs of stabilization are appearing, prepare for an unpredictable environment as the pandemic ebbs and flows and lockdown restrictions shift. Critical care for Covid patients and pent-up demand for routine care and elective procedures will factor into the landscape. Make sure your firm is adaptable and ready to fulfill your clients’ needs.
