Healthcare labor markets appear to be strengthening

Near-term demand for healthcare workers is the strongest in San Jose, Calif,. Portland, Ore. and Charlotte, N.C., says Health Workforce Solutions LLC’s Labor Market Pulse Index released Friday for the second quarter of 2012.

The LMPI is a quarterly barometer of local market healthcare workforce fluctuations that tracks 30 labor markets throughout the U.S.

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Among the findings for Q2 2012:


• Near-term demand for healthcare workers continues to grow the fastest in the West, although certain markets such as Dallas and Charlotte have consistently outperformed much of the rest of the country over the last few quarters. 

• The LMPI composite index, a representative basket of the 30 largest markets, posted a 9 percent increase in the second quarter of 2012, after an 8 percent decline the prior quarter. The index is now at its highest level since mid-2010.
• For Q2 ended June 30, 2012, 17 markets of the 30 tracked by the LMPI showed signs of accelerated expansion (versus 14 in the prior quarter).
• The Cleveland, Las Vegas and New York markets ranked at the bottom of the 30 markets tracked. 

Some geographic areas that are traditionally strong for the healthcare labor markets struggled in Q2, noted David Cherner, managing partner of Health Workforce Solutions. 

“There are always a few surprises quarterly where we see areas that have been consistently outperforming the rest of the market see a quarterly drop because of an isolated layoff or closure or two,” he said. “This quarter we saw it in Las Vegas and Riverside, Calif., for example, but I expect both markets will return to levels they were earlier this year in the next quarter or so.”

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“I think what's significant is that after a few bumpy years, the LMPI composite index has now rebounded consistently to levels we haven't seen in a couple years,” Cherner said. “… (T)his bodes well for healthcare hiring into the next year, particularly now that we have all of the uncertainty around reform finally behind us.”

According to Cherner, the Supreme Court ruling on the Affordable Care Act provides more clarity for healthcare hiring managers who can “now get back to work and continue planning for a new workforce environment.”