The U.S. healthcare staffing industry has experienced significant changes recently. After tripling in size during the pandemic, the market contracted by 22% in 2023, marking its first decline since 2010. This downturn was primarily driven by a 36% drop in travel nursing and a 25% decrease in per diem staffing.
📉 Challenges at Hand
Travel Nursing: Faced a 36% revenue decline due to reduced demand and pay rates.
Per Diem Staffing: Contracted by 25%, influenced by regulatory changes and competition from digital platforms.
Allied Health: While there was growth in 2023, a projected 18% decline was expected in 2024 as healthcare clients reduce bill rates.
📈 Bright Spots Ahead
Locum Tenens: Continues to grow, driven by physician shortages and increased demand for specialized care.
Advanced Practice Providers: Nurse practitioners and physician assistants are seeing steady growth, especially in underserved areas.
Digital Platforms: Technology is reshaping staffing, with digital platforms streamlining recruitment and expanding market share.
💡 Looking Forward
Despite recent contractions, the healthcare staffing industry remains robust, with a projected 6% growth in 2025. Adapting to technological advancements and evolving workforce needs will be crucial for future success.
For a more detailed analysis, you can read the full SIA report here: 👉 What Lies Ahead for the US Healthcare Staffing Industry?
