Healthcare jobs are on the rise in the country. According to the Bureau of Labor Statistics, hospital job growth drastically expanded during 2015, with an estimated 172,200 new payroll additions. Not only is this a 306 percent increase from 2014, but healthcare jobs in general represented a substantial 18 percent of the 2.6 million new jobs created last year.
"What you would probably find is that the increased costs and increased labor costs are closely tied to wages and benefits," Christopher DeCarlo, an economist with the BLS, explained to John Commins at Health Leaders Media. "Ultimately what you probably have is more people coming into the healthcare sector as a result of the higher wages and net growth, particularly with the increasing the number of retirees."
Many industry analysts attribute this explosive growth to a simple matter of supply and demand. Much of this demand is due to the influx of newly insurance patients through the Affordable Care Act and rise in Americans suffering from chronic illnesses and other health problems. According to the Partnership to Fight Chronic Disease, around 45 percent of the population suffers from some sort of chronic illness, which requires long-term medical attention.
"Hospital growth has exceeded expectations this past year."
Despite this exponential industry growth, Trustee Magazine's Steven Valentine wrote that operating costs will continue to be a problem for the healthcare industry in general. Valentine explained that "organizations will continue to reduce nonclinical personnel and non-core service expenditures, streamline clinical and nonclinical processes, refine compliance with group purchasing organizations and optimize vendor relationships.
Furthermore, a push toward home care and concierge medicine may slightly stagnate job growth throughout the coming years. Home care is increasingly adopted among potential long-term care patients who benefit from receiving treatment within their own home, instead of in nursing home facilities. Overall, though hospital growth has exceeded expectations this past year, the industry faces unique challenges that could affect the hiring process and application pool.
"The growth in healthcare jobs is a sign that that part of our economy is growing larger than we can handle, and while it is great for everyone who has those jobs, paying for healthcare shifts tax dollars or it comes out of healthcare premiums, which come from our salaries, and so that's not good news," Nicole Smith, chief economist at the Georgetown University Center on Education and the Workforce, explained to Commins. "It's not just the government that is paying for healthcare. About half of healthcare spending is non-governmental, so it is coming out of paychecks."
Employers that want to make smarter healthcare hiring decisions should integrate online pre employment testing into their hiring process. These tests provide accurate results for hiring managers to easily determine whether or not their applicants possess the needed skills for the open position. Contact EmployTest today to hire better employees and continue the growth in hospital jobs.