Indeed Healthcare Jobs Tracker: Robust Employment Growth, Rising Wages
In the Indeed Hiring Lab’s healthcare tracker, we analyze the Healthcare and Social Assistance industry using the latest Bureau of Labor Statistics data. We look at the state of overall Healthcare and Social Assistance employment, the industry’s subsectors, and associated wages.
Healthcare and Social Assistance is a Bureau of Labor Statistics category which spans the wide spectrum of medical care and provides a comprehensive overview of the medical industry. It comprises a range of Healthcare workers, including those from hospitals, outpatient services and nursing facilities, as well as home health aides, who are categorized under Social Assistance.
The industry saw both employment growth and wage growth in Q3 of this year. Since June, the industry has added about 140,000 employees in total. In the last month, 41,400 new employees were added, with nearly 70% of those in the Ambulatory Healthcare Services subsector, better known as outpatient services.
A large industry to begin with, Healthcare and Social Assistance total employment increased by nearly four million workers over the last decade. As of September 2019, the industry employment stands at an all-time record high of 20.5 million workers. There seems to be no end in sight for Healthcare and Social Assistance’s blockbuster numbers. Healthcare and Social Assistance is projected to have strong growth over the next decade, and 60% of the top 30 fastest growing occupations are healthcare-related.
Healthcare and Social Assistance overview
- Total Healthcare and Social Assistance employment through September 2019 rose 2.72% from the same time last year. Overall we see strong growth in Healthcare and Social Assistance employment. Average quarterly growth accelerated to 2.7%, relative to the same time last year, beating out Q2’s average growth rate of 2.7% and Q1’s of 2.4%. The Healthcare and Social Assistance industry appears to be unaffected by the slowing labor market.
- Ambulatory Healthcare Services, also known as outpatient services, accounted for 55.1% of the nearly 140,000 workers added since June of this year, with Social Assistance accounting for 22.0%.
Ambulatory Healthcare Services leads subsector growth
- Ambulatory Healthcare Services has seen a steady uptick in year over year growth. With an average quarterly growth rate of 3.7% in Q3, Ambulatory Healthcare Services employment has outpaced both it’s 2019 Q2 and Q1 average growth rates. Its growth has also continually outpaced all other subsectors since May of this year.
- While Social Assistance continues to slow from 2015, there’s still opportunity for job seekers in this sector. Average Q3 quarterly employment growth is 3.3%, only slightly lower than its average quarterly Q2 growth of 3.4%.
Steady wage growth across all healthcare and social assistance subsectors
- We see hourly wage growth across all Healthcare and Social Assistance subsectors. Wage growth in Nursing and Residential Care Facilities leads the pack, at 4.2% from this August compared to the same time last year. This is despite a slight decline in year over year average weekly hours worked, which fell by -2.3% in July and -0.6% in August.
- Ambulatory Healthcare Services also saw a year over year increase in hourly wage growth (1.6%) despite a year over year decline in average weekly hours in July (-1.5%) and August (-0.6%).
Andrew Flowers is an Economist at the Indeed Hiring Lab, focusing on the US labor market. Previously he was the quantitative editor and economics writer at FiveThirtyEight, Nate Silver’s data-driven news site; and before that, he was an economic analyst for the Federal Reserve Bank of Atlanta. As a freelance journalist, he has written for The Economist. He has a B.A. in economics from the University of Chicago.