TL/DR –
The healthcare sector has surpassed retail to become the leading industry by employment in the U.S., as per a report by the Stanford Institute for Economic Policy Research. From 1980 to 2022, the healthcare industry saw jobs and wages increase nearly twice as fast as other sectors, with healthcare jobs growing by 144.5% compared to 64.6% for the overall labor force. The report also highlighted the largest wage increase among midlevel healthcare employees such as nurses and aides, and attributed this growth to the rising demand for these roles as well as their increasing educational qualifications.
Healthcare Supersedes Retail in Job Creation, Says Stanford Institute Report
Stanford Institute for Economic Policy Research’s recent study reveals that the healthcare industry has replaced retail as the largest employment sector in the US. Healthcare job growth and wages have nearly doubled compared to other industries from 1980 to 2022, showing a 144.5% increase.
Wage Increases and Gender Distribution in Healthcare
Nurses and midlevel healthcare workers witnessed the greatest wage increases. The report also highlights the dominance of women in nursing and aide jobs, with an increasing number of men entering the field recently.
Explaining the Employment and Earnings Growth in Healthcare
The study suggests the strong growth in healthcare jobs and earnings could be due to various factors. Limited supply of doctors could have escalated the demand for midlevel workers and nurses. Technological advancements in diagnostics could also have shifted the demand towards these professionals who administer tests and prescribe treatment.
Education and Training Boosting Pay Scales
The report also notes that improved education among healthcare workers, particularly nurses, could be driving up wages. Bachelor’s and master’s degrees are increasingly common among nurses. Vocational training for certification is encouraged or required by many employers, especially for aides.
Fastest-Growing Jobs in Healthcare: Home Health and Nursing Aides
The report identifies healthcare aides, including home health and nursing aides, as the fastest-growing job category in healthcare, with a 206.1% growth in jobs from 1980 to 2022. However, aides’ wage growth at 33.4% lagged behind other healthcare workers, with nurses seeing an 81.7% increase.
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