Health Jobs Pick Up in Booming Jobs Report
Today’s Employment Situation Summary, which came in above strong expectations, also saw faster growth in health services jobs than other nonfarm civilian jobs. In December, health services jobs grew at 0.26 percent, versus only 0.20 percent for other jobs. Health services jobs comprised 13 percent of the 292,000 jobs added in December (Table I).
Within health services, outpatient care jobs grew much faster than jobs at other facilities. Overall, jobs at ambulatory facilities grew faster than hospital jobs. This is a good development because hospitals are less efficient locations of care.
However, over the twelve-month period, health services jobs have grown much faster than other jobs: 3.19 percent versus 1.73 percent. They comprised 54 percent of the 2.65 million jobs added (Table II). This indicates the growth in health spending experienced subsequent to Obamacare is not being delivered with growth in productivity. Further, hospitals (the least efficient location of care) have added jobs at a slightly higher rate than ambulatory facilities.
Hope all is well John,
“This indicates the growth in health spending experienced subsequent to Obamacare is not being delivered with growth in productivity.”
So the sector’s job growth is overweight; the increased investment in labor is independent of any production growth – I’m comprehending that correctly, right? Is the assertion that overhead rates have further ballooned under ACA? My concern then would be redundancies down the road as Congress guts ACA.
However, careers in this sector are relatively lucrative and IMHO that spike in aggregate demand is our best path towards healthy inflation. Inefficient and anti competitive? Of course, but who wouldn’t feather their beds w/ cheap money?
Exactly. Although not covered in this data, there is no sign of increasing productivity.