The unfortunate truth about most health care jobs

https://www.cbsnews.com/news/health-care-jobs-salary-the-unfortunate-truth/

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For Americans seeking career advice, experts often point to health care as an occupation ripe with opportunities. If only the pay were better.

Employment data do, in fact, show the health care industry to be the fastest growing sector in the U.S. A recent analysis by the National Employment Law Project estimates that the number of jobs, mostly tied to hospitals, will rise 21 percent in the decade ending 2024. That contrasts with a projected 7 percent decline in manufacturing.

About 1.4 million manufacturing jobs evaporated during a 16-year period, while health care added 1.3 million, according to the analysis, which focused on 11 industrial states. By 2016, health care had a net 780,000 more workers versus manufacturing in the region, concluded NELP, a labor rights advocacy group. The figures are based on U.S. Labor Department data from its quarterly census of employment and wages.

“There’s been a lot of focus on the industrial Midwest in general because there is so much anxiety,” said Rajesh Nayak, NELP’s director of research and author of the analysis, in an interview. “Contrast that with the growing health care industry, and you start to see opportunities for folks.”

Yet for every higher-paying job held by workers like nurses and doctors, more than six workers such as orderlies, phlebotomists and cooks make less than $15 an hour. Nationwide, 70 percent of hospital service workers make less than $15 an hour, NELP found. In the Midwest, it’s 71 percent.

The NELP study defined Midwest industrial states as Minnesota, Indiana, Missouri, Illinois, Wisconsin, Michigan, Indiana, Ohio, Kentucky, West Virginia and Pennsylvania.

By contrast, unionized hospital workers in Seattle, New York and Oakland had wages higher than $15. Higher wages can help with quality of care, the group said, citing collective bargaining agreement data.

“We can take some of the lessons from factories — folks had decent labor standards. They had a collective bargaining agreement, or just more of a voice in general,” Nayak said. By raising wages, “You start to get to a place where people can pay for a family that looks like the kind of wages that folks were getting in the factory jobs.”

It’s not just hospitals that pay lower hourly wages, a study released this week by the Center for Economic Policy and Research shows hourly wages in outpatient centers either fell or stayed stagnant in the decade ending in 2015. Median hourly wages after inflation is factored in rose 75 cents over the decade, from $23.79 to $24.54, the think tank found. That amounts to a rise of only 3.2 percent over 10 years.

“A hospital’s workforce is its most vital asset,” said Marie Watteau, vice president of media relations with the American Hospital Association, in an e-mailed statement. “From the clinicians to environmental services professionals, all play a role in ensuring that patients receive high quality care.”

The top three fastest-growing health care occupations from 2014 to 2024 are personal care aides, registered nurses and home health aides, according to projections from the Bureau of Labor Statistics. Health care will drive all five of the five fastest growing industries, the NELB analysis found.

In 2015, spending tied to health care made up 17.8 percent of U.S. gross domestic product, a figure that is projected to rise to 19.9 percent by 2025, according to the Centers for Medicare and Medicaid Services.

Women made up 68 percent of hospital workers in Midwest industrial metro areas, while 49 percent were non-white, the NALP analysis found.

On Monday, thousands workers rallied in Chicago, including hospital support workers, focusing on issues including raising the minimum wage to $15 an hour by 2022 from the current $8.25. Illinois Gov. Bruce Rauner vetoed such an increase last month, contending the cost may be too high for some employers.

Even as some cities like Seattle require higher wages, some states, like Missouri, are rolling them back as employers generally complain they can’t afford to pay. Conflicting studies earlier this year differed on how well Seattle’s shift  to a higher minimum wage affected the city’s economy.

Most counties in the U.S. have a cost of living across industries that isn’t covered by minimum wage incomes, according to a recent blog post  from Amy Glasmeier, a professor and co-chair at the Massachusetts Institute of Technology’s economic geography and regional planning Ph. D program.

For instance, in Chicago, a single parent of one child needs to earn $24.67 an hour to meet a definition of living wage, while a person living alone there needs at least $12.33, based on a living-wage calculator  developed by Glasmeier in conjunction with MIT.

The Better Care Reconciliation Act: Economic and Employment Consequences for States

http://www.commonwealthfund.org/publications/issue-briefs/2017/jul/bcra-economic-employment-consequences-states?omnicid=CFC1239758&mid=henrykotula@yahoo.com

Issue: A draft Better Care Reconciliation Act (BCRA) has been introduced in the U.S. Senate as an alternative to the American Health Care Act (AHCA), which was passed by the House of Representatives on May 4, 2017. The Congressional Budget Office estimates the BCRA would raise the number of uninsured by 22 million by 2026.

Goal: To determine the consequences of the draft BCRA on employment and economic activity in every state. This report updates an earlier analysis of the effects of the AHCA.

Methods: We compute changes in federal spending and revenue from 2018 to 2026 for each state and use the PI+ model to project the effects on states’ employment and economies.

Findings and Conclusions: While the draft BCRA and the AHCA would have similar effects on the number of uninsured Americans, the BCRA would lead to significantly larger job losses and deeper reductions in states’ economies by 2026. A brief spurt in employment would add 753,000 more jobs in 2018, but employment would then deteriorate sharply. By 2026, 1.45 million fewer jobs would exist, compared to levels under the current law. Every state except Hawaii would have fewer jobs and a weaker economy. Employment in health care would be especially hard hit with 919,000 fewer health jobs, but other employment sectors lose jobs too. Gross state products would be $162 billion lower in 2026. States that expanded Medicaid would be especially hard hit.

 

Repealing Federal Health Reform: Economic and Employment Consequences for States

http://www.commonwealthfund.org/publications/issue-briefs/2017/jan/repealing-federal-health-reform?omnicid=EALERT1150318&mid=henrykotula@yahoo.com

The Commonwealth Fund

Abstract

Issue: The incoming Trump administration and Republicans in Congress are seeking to repeal the Affordable Care Act (ACA), likely beginning with the law’s insurance premium tax credits and expansion of Medicaid eligibility. Research shows that the loss of these two provisions would lead to a doubling of the number of uninsured, higher uncompensated care costs for providers, and higher taxes for low-income Americans.

Goal: To determine the state-by-state effect of repeal on employment and economic activity.

Methods: A multistate economic forecasting model (PI+ from Regional Economic Models, Inc.) was used to quantify for each state the effects of the federal spending cuts.

Findings and Conclusions: Repeal results in a $140 billion loss in federal funding for health care in 2019, leading to the loss of 2.6 million jobs (mostly in the private sector) that year across all states. A third of lost jobs are in health care, with the majority in other industries. If replacement policies are not in place, there will be a cumulative $1.5 trillion loss in gross state products and a $2.6 trillion reduction in business output from 2019 to 2023. States and health care providers will be particularly hard hit by the funding cuts.

http://www.commonwealthfund.org/interactives-and-data/maps-and-data/the-impact-of-aca-repeal-on-employment

 

Healthcare adds 33,000 jobs in September, though diagnostic labs shed staff

http://www.healthcarefinancenews.com/news/healthcare-adds-33000-jobs-september-though-diagnostic-labs-shed-staff

Healthcare businesses added 33,000 jobs in September, the U.S. Department of Labor’s Bureau of Labor Statistics announced on Friday, as the sector continues to be one of the biggest drivers of American jobs.

Overall, the U.S. economy added 156,000 jobs in the month, and the unemployment rate held at 5 percent.

Ambulatory services added 23,900 jobs in the month while hospitals added 6,900 positions. Only medical and diagnostic laboratories lost jobs in the month, shedding 400.

Overall, healthcare has added 445,000 jobs in the past 12 months. September’s gains more than double the 14,000 jobs the sector added in August.

Here’s the seasonally adjusted breakdown for the healthcare sector. All numbers are in thousands:

Healthcare adds 48,000 jobs in May, nursing facilities see smallest jump

http://www.healthcarefinancenews.com/news/healthcare-adds-48000-jobs-may-nursing-facilities-sees-smallest-jump?mkt_tok=3RkMMJWWfF9wsRogvajBZKXonjHpfsX57u4rUa6zlMI%2F0ER3fOvrPUfGjI4GTcBlI%2BSLDwEYGJlv6SgFQ7LHMbpszbgPUhM%3D

As usual, ambulatory health centers led the hiring, adding 28,000 jobs in May, while hospitals added 16,000 jobs.

As usual, ambulatory health centers led the hiring, adding 28,000 jobs in May, while hospitals added 16,000 jobs.