SUPPLY FACTOR: Dramatic Shortage of Qualified Medical Personnel
With the aging population in America, there will be a major crisis in the US workforce in general. Between 2006 and 2016, the labor force is projected to grow at an annual rate of 0.8 percent, slower than the population growth rate of 0.9 percent. As the Baby Boomers continue to age, the 55 to 64 age group will increase by 30.3 percent or 9.5 million persons, more than any other group.
The 35 to 44 age group will decrease by 5.5 percent, reflecting a slowed birth rate following the baby boom generation, while the youth population, aged 16 to 24, will decline 1.1 percent over the 2006-2016 period.
The demographics of the labor force will change dramatically in the projected period between 2006 and 2016: the youngest working population (16 to 24-year-olds) will decrease by almost 3%, individuals in their prime work years of ages 24 to 54 will increase with less than 11%, and the 55-and-older age group have the greatest increase in their participation rate: almost 5 percent. This growth rate is nearly 5 times the overall labor force annual growth rate of 0.8 percent. Between 2010 and 2020, the number of people 65 and older is expected to increase 26,4% percent. (Health USA, 2008). Meanwhile, the population of 45 to 64 year-olds will increase only by 4% (United States Census Bureau).
Baby Boomers already represent 43% of the total workforce. Forty-four percent of all households in the United States have at least one Baby Boomer in their family. Forty-five percent of the United States employers are considering the retiring workforce a major challenge to overcome in the next years. The main reason for this concern is the irreplaceable experience and knowledge of the retiring Baby Boomers in a skill shortage environment across all healthcare professions. That applies to nurses, physicians, scientists and managers of healthcare facilities.
Another factor that is working in favor of Internet job advertising is the Generation Y entering in the workforce. According to United States Census Bureau figures, Generation Y (79.8 million members) is slightly larger than the Baby Boomer generation (78.5 million members). Second in numbers after the Baby Boomers at 70 million-strong, Generation Y will soon become the largest generation in the workplace. With predictions from the Bureau of Labor Statistics that the American workforce will drop by 8 percent between 2010 and 2020, it is vital for companies to understand and embrace Generation Y’s unique workforce attitudes and values in order to attract and retain top performers. Another characteristic of Generation Y is that its members are prone to change jobs more often than the Baby Boomers (49% versus 35%).
A recent study featured in the Health Forum Journal reported that in virtually every hospital, the vacancy rates for registered nurses, pharmacists and radiology technologists are greater than 10%. It also stated that more than 15% of hospitals are reporting a severe shortage of nurses – with more than 20% of their nursing positions currently vacant.
Between 2010 and 2016, healthcare employment will grow by four million new jobs; representing 25.4% growth in employment for healthcare professionals
The 35 to 44 age group will decrease by 5.5 percent, reflecting a slowed birth rate following the baby boom generation, while the youth population, aged 16 to 24, will decline 1.1 percent over the 2006-2016 period.
The demographics of the labor force will change dramatically in the projected period between 2006 and 2016: the youngest working population (16 to 24-year-olds) will decrease by almost 3%, individuals in their prime work years of ages 24 to 54 will increase with less than 11%, and the 55-and-older age group have the greatest increase in their participation rate: almost 5 percent. This growth rate is nearly 5 times the overall labor force annual growth rate of 0.8 percent. Between 2010 and 2020, the number of people 65 and older is expected to increase 26,4% percent. (Health USA, 2008). Meanwhile, the population of 45 to 64 year-olds will increase only by 4% (United States Census Bureau).
Baby Boomers already represent 43% of the total workforce. Forty-four percent of all households in the United States have at least one Baby Boomer in their family. Forty-five percent of the United States employers are considering the retiring workforce a major challenge to overcome in the next years. The main reason for this concern is the irreplaceable experience and knowledge of the retiring Baby Boomers in a skill shortage environment across all healthcare professions. That applies to nurses, physicians, scientists and managers of healthcare facilities.
Another factor that is working in favor of Internet job advertising is the Generation Y entering in the workforce. According to United States Census Bureau figures, Generation Y (79.8 million members) is slightly larger than the Baby Boomer generation (78.5 million members). Second in numbers after the Baby Boomers at 70 million-strong, Generation Y will soon become the largest generation in the workplace. With predictions from the Bureau of Labor Statistics that the American workforce will drop by 8 percent between 2010 and 2020, it is vital for companies to understand and embrace Generation Y’s unique workforce attitudes and values in order to attract and retain top performers. Another characteristic of Generation Y is that its members are prone to change jobs more often than the Baby Boomers (49% versus 35%).
A recent study featured in the Health Forum Journal reported that in virtually every hospital, the vacancy rates for registered nurses, pharmacists and radiology technologists are greater than 10%. It also stated that more than 15% of hospitals are reporting a severe shortage of nurses – with more than 20% of their nursing positions currently vacant.
Between 2010 and 2016, healthcare employment will grow by four million new jobs; representing 25.4% growth in employment for healthcare professionals