Healthcare Staffing Market Trends

Growth Drivers

• Shortage of healthcare workers - There is a surge in the population of patients across the globe credited to which the demand for healthcare staffing is also increasing. According to a report by the Bureau of Health Workforce in 2024, it is predicted that there will be a shortage of about 37% of primary care physicians in nonmetro areas. It is predicted that about 100 countries have skilled professionals below the threshold level which is a shortage of about 7.2 million health professionals with proper skills. 

• Slated technological advancements in healthcare - Owing to the healthcare and pharmaceutical sectors are increasing, credited to the surge in AI penetration along with the demand for more accurate diagnoses, this would surpass the demand for healthcare staffing such as miniaturized electronics, biocompatible materials, wireless communication protocols, advanced sensor technology, and many more. According to a report in 2022, more than 80% of medical practices and hospitals, already have or are planning to have some kind of AI technology in place.

• Increase in the geriatric population - Accredited to the healthcare support for health issues and needs, there is an increasing demand for healthcare, there is also a greater focus on providing more personalized and better care to elderly patients. According to a report by the Census in 2020, the U.S. population above the age of 65 years increased by more than 38% from 2010 to 2010 in 10 years.

Challenges

• Lack of skilled health workers - There is a lack of skilled workers in the healthcare staffing industry impelled by which several healthcare staffing firms are being turned down. Many healthcare staffing providers have started training programs for upskilling their work, but it would take ample time to take the lead.

• Lack of wages - There is a shortage in wages for several healthcare workers and medical assistants. According to the Bureau of Labor, nurses earn up to USD 43 per hour, while many medical assistants earn below USD 21, which according to the expected professional requirement does not equal fair compensation.