New York, NY (PRWEB) April 04, 2014
In the five years to 2014, revenue for the Healthcare Staff Recruitment Agencies industry increased at an average annual rate of 4.8% to $14.3 billion. Much of this growth is attributable to strong industry rebounds from 2009 lows, when high unemployment, reduced demand for healthcare services and competitive pricing diminished industry revenue. Industry growth is largely the result of two factors: increasing demand for healthcare services, driven by a progressively aging US population with greater need for medical services; and a shortage of qualified physicians, nurses and other healthcare personnel. In addition, hospitals have increasingly shifted their hiring preferences away from longer-term and permanent hiring, instead relying on temporary workers to handle an influx of inpatient demand. As a result, revenue for the Healthcare Staff Recruitment Agencies Industry increased in each of the past five years and is expected to rise by 3.4% in 2014.
According to IBISWorld Industry Analyst Stephen Morea, “Although recruitment agencies in this industry provide placement services for physicians and full-time executive healthcare professionals, a majority of industry revenue is earned through the placement of temporary workers.” Nurses, physicians and allied-health professionals recruited by this industry remain employees of their respective agencies. As a result, industry employment has increased during the past five years, rising at an expected annualized 2.8% from 2009 to 2014.
“Over the next five years, continued growth in the healthcare sector, coupled with improvements in the overall labor market, will boost industry revenue,” says Morea. Furthermore, the number of adults aged 65 and older is forecast to increase at an average rate of 3.1% per year. The aging Baby Boomer generation will represent an important growth opportunity for the industry, as it will push healthcare providers to hire extra staff to compensate for the influx of patients, thereby raising demand for industry services. At the same time, the industry will benefit from an expected shortage of nurses and doctors. Hospitals and clinics that do not have enough staff will turn to recruitment agencies to temporarily fill their rosters, especially as the healthcare sector grows. As a result of these factors, industry revenue is expected to increase at an annualized 3.2% to $16.7 billion in the five years to 2019.
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 others' physical well-being and social-functioning capacity. 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 recruitment agency, these agencies do not directly supervise 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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