Article by Tara Bannow, November was Healthcare’s Second Strongest Hiring Month of 2019, on modernhealthcare.com
The federal government’s November jobs report highlights healthcare industry’s resiliency, with monthly job growth the second highest it’s been all year.
Healthcare industry added an impressive 45,200 jobs in November, according to preliminary estimates from the U.S. Bureau of Labor Statistics. That’s up significantly from an unusually weak October in which the industry made just 11,900 new hires, a number the BLS revised downward from its original estimate. It’s also the highest healthcare hiring since March, when the industry added 49,900 jobs.
While strong, one weak spot in last month’s healthcare hiring was skilled-nursing facilities, which shed 1,700 jobs. That’s a steeper drop than in October, in which the already weak sector shed 1,300 jobs. Skilled-nursing hiring was likely impacted in both months by a new CMS payment model that has prompted layoffs in the skilled nursing sector.
The only ambulatory sector that lost jobs last month was in the offices of other health practitioners, which shed 2,400 jobs. Hospitals added 9,900 jobs in October, which is closer to the norm for the sector. Hospitals added just 2,100 jobs in October, which was abnormally low.
Residential mental health facilities added 1,200 jobs in November, and community care facilities for the elderly added 1,400 jobs. Medical and diagnostic laboratories added 2,100 jobs, down from 3,000 in October.
The healthcare sector has added 414,000 jobs over the past 12 months, according to the BLS.
Across all industries, manufacturing had the strongest November, having added 54,000 jobs. That marked a strong rebound after losing 43,000 in October. The BLS noted that the shift reflected the return of workers who were on strike in October. More than 76% of manufacturing’s new hires were in motor vehicle parts. Leisure and hospitality also had a strong November, having added 45,000 jobs during the month. Professional and technical services added 30,600 jobs.
The overall unemployment rate ticked down to 3.5% in November compared with 3.6% in October. Total nonfarm payroll employment rose by 266,000 jobs, far exceeding analysts’ expectations and up significantly from an estimated 128,000 in October.
The BLS noted that job growth has averaged 180,000 per month in 2019, compared with an average monthly gain of 223,000 in 2018.