Threat of sequester didn’t slow healthcare staffing in February

Last month, stories of widespread job losses due to the impending sequester cuts dominated the headlines, but it seems the healthcare industry didn’t get the memo. In February, the healthcare industry created a total of 32,000 jobs. The numbers should be taken with a grain of salt. The new job numbers are for February, and the sequester cuts went into effect in March. Furthermore, cuts to healthcare spending are not scheduled to begin until April 1. Still, it is a promising sign that the healthcare industry feels comfortable adding staff during such an unstable economic period. Nicole Smith, a senior economist at the Georgetown University Center on Education and the Workforce, told HealthLeaders Media, that the healthcare sector recently proved to be “recession proof”. “During the most painful recession since the Great Depression, this sector also continued to add jobs at a steady pace,” Smith said. It’s still too early to tell whether the industry is also “sequester proof”. Looking at jobs data from previous years shows that healthcare staffing numbers are typically high in January and February, but drop off in the remaining months. Moody’s Investors Service has projected a negative outlook for non-profit hospitals as a result of the sequester. Sarah Vennekotter, assistant vice president in Moody’s not-for-profit healthcare division, told Becker’s Hospital Review that staffing is one place hospitals will look to reduce costs. Still, according to research conducted by George Mason University only 4% of the 700,000 jobs projected to be lost between now and December 2014 due to sequestration will be in the healthcare sector. Considering the healthcare industry represents 13% of the workforce, healthcare is expected to make out better than most others. Smith sums it up best, “The bottom line is, look out for a slowdown in growth over the next few months, but much like the last five years, healthcare is still a good bet.”