Data released in February 2015 by the US Bureau of Labor Statistics’ (BLS) Job Openings and Labor Turnover Survey (JOLTS) underscores the trends noted in our recently released Healthcare Growth Assessment. The JOLTS survey reported the number of quits (workers voluntarily leaving a job) in the Healthcare and Social Assistance sector reached the highest level since the BLS began measuring it in 2001, recovering fully after having experienced precipitous drops during the great recession (Fig. A). It should be noted that the BLS does not provide more granular data than “healthcare and social assistance.” However, even this higher level category is a useful proxy for analysis of the healthcare industry. The JOLTS finding is significant in that it signals the return of a healthy level of “churn” in the healthcare industry; an especially positive trend which can be profitably capitalized on by the industrious staffing firm.

Click on chart below to enlarge.

Fig. A: Number of quits (in thousands) in the Healthcare and Social Assistance sector, 2001-2014

What is the importance of the JOLTS findings? The main point is that uncertain economic prospects or an uncertain economic environment typically lead to situations where the individuals involved lack the confidence to sever ties with what is sufficient to sustain oneself in order to search for better or altogether different opportunities. As the level of economic uncertainty decreases, individuals find themselves more willing to take on risks or try new things, i.e. a temporary travel assignment.

During the Great Recession, it was in part the manifestation of this principle that pummeled the results of healthcare staffing firms both small and large. Although total healthcare employment did not decline during the recession, the economic environment was turbulent enough to shake the confidence of healthcare staff, who increasingly found themselves preferring the security of a full-time job to the potential benefits and flexibility of temporary assignments. In addition, because approximately 70% of RNs are married women, many nurses and other healthcare staff who may have originally planned on retiring, had retired already, or were only working part-time likely increased their participation in the workforce in order to stabilize their family’s economic situation (if a spouse had lost his job, for instance)¹. These factors (along with some others) led to an environment which was particularly unfavorable to temporary staffing, and contributed to the significant declines in revenues experienced by many healthcare staffing firms during that time.

The good news is that the JOLTS quits data now indicates that the level of “churn” in the healthcare industry has fully recovered and then some. This suggests that healthcare staff are feeling more confident about leaving their permanent positions, potentially to try a temporary assignment. One actionable response to the JOLTS data may be to consider a marketing campaign to reach out to former travel nurses or other temporary healthcare staff who haven’t been on an assignment recently, as a reasonable interpretation of the findings is that there seems to be pent up demand among workers in the healthcare and social assistance sector for a change of scenery.

For further analysis and to read the full December 2014 Healthcare Staffing Growth Assessment report.

(1) Peter Buerhaus et al., “The Recent Surge in Nurse Employment: Causes and Implications.” Health Affairs. 28, no. 4 (2009): w657-w668