To keep up with technology, politics, and an aging population, healthcare jobs will need to increase by 5.6 million new jobs within the next 8 years, according to a recent study just released by Georgetown University’s Center on Education and Workforce.
Because of growing demand for services and low productivity, the demand for healthcare workers over the next decade will grow nearly twice as fast as the national economy. And whereas in the 1960s, the United States ranked at the high end of the average for per capita healthcare spending, we now spend more than double that of Europe and the gap is growing.
Additionally, more than 80% of these new jobs—or 4.6 million—will require post secondary education and specialized training, paving the way for colleges, universities, and healthcare education companies to also see a corresponding boost in enrollment.
Healthcare-related administrative positions will also see a jump in hiring with hospital staff, IT consultants, billing specialists, and office administrators adding more than 4 million more jobs to the rosters, to go from 15.6 million two years ago to 19.8 million jobs in 2020.
However, as healthcare jobs seem to be increasing year over year, data shows that spending may actually be going down. Compared with the previous year, healthcare prices in April rose only 1.9% compared with the same month last year. February showed the slowest rate of growth at 1.8%, the smallest year-over-year increase in 14 years.
According to a report issued by Altarum Institute last month, healthcare spending in this country actually appears to be trending in a downward direction. But, says Charles Roehrig, director of the Altarum Center for Sustainable Health Spending, it’s not time to celebrate just yet.
We don’t know the cause of this decline, and health job growth is at odds with the low spending. Something’s got to give–either spending grows, job growth slows or wages in the health industry decline,” he said.
In April, prices rose 1.9 percent compared to April 2011. Meanwhile, spending grew 3.9 percent year-to-year between April 2011 and April 2012, down from the 4 percent rate reported in March 2012.