As baby boomers in the health field retire, a shortage of labor has sparked demand for recruitment
Los Angeles, CA (PRWEB) February 04, 2013
IBISWorld estimates that revenue for the Healthcare Staff Recruitment Agencies industry has declined at an average rate of 2.5% per year to $14.0 billion in the five years to 2013. According to IBISWorld industry analyst Kevin Culbert, “The decline has come in spite of growth across the healthcare sector and shortages of healthcare personnel.” Industry demand suffered greatly in 2009 and 2010, when high unemployment wreaked havoc on recruitment agencies across the board. During those years, industry revenue fell an estimated 23.9% and 12.7%, respectively.
Because temp workers provided by this industry remain employees of their agencies, industry employment also declined significantly during 2009 and 2010. Consequently, IBISWorld estimates that industry employment has declined at an average rate of 0.9% annually to 203,276 in the five years to 2013. High unemployment has not only made it easier for hospitals and clinics to find suitable staff on their own, it has also forced industry operators to reduce prices, eating into profit margins. The trend of reducing prices was exacerbated by the Healthcare Staff Recruitment Agencies industry’s low market share concentration. “Because the industry is mainly made of up small-scale companies and nonemployers, price-based competition became essential to retain clients,” says Culbert.
Although the recession was tough on the industry, it has since experienced a rebound, including expected revenue growth of 5.8% in 2013. Over the next five years, continued growth in the healthcare sector, coupled with improvement in the labor market, will increase the rates that can be charged to clients. Furthermore, the number of adults aged 65 and older is forecast to increase at an average rate of 3.1% per year. The aging of the Baby Boomer generation will pose an important growth opportunity over the next five years because they will necessitate a greater number of healthcare professionals to compensate for their health needs.
At the same time, the industry will also benefit from a continuing personnel shortage of nurses and doctors. Many doctors belong to this generation, so it will fuel a personnel shortage as they retire, boosting demand for recruitment agencies. Hospitals and clinics that do not have enough staff will turn to recruitment agencies to fill their roster, especially as the healthcare sector grows. As a result of these factors, IBISWorld estimates that industry revenue will increase strongly in the five years to 2018. For more information, visit IBISWorld’s Healthcare Staff Recruitment Agencies in the US industry report page.
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IBISWorld industry Report Key Topics
Healthcare staff recruitment agencies list employment vacancies for individuals that work to improve the well-being and social functioning capacity of others. These companies also refer and place applicants for employment. Individuals who are referred or placed are not employees of the agencies. While temp workers remain employees of the temp agency, temp agencies do not provide direct supervision of their employees at clients' work sites.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.