latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/us-health-sector-s-job-growth-slows-with-797-000-total-lost-since-february-59827934 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

US health sector's job growth slows with 797,000 total lost since February

COVID-19 Pandemic Likely To Cause US Telemedicine Boom

Gauging Supply Chain Risk In Volatile Times

S&P Global Market Intelligence

Cannabis: Hashing Out a Budding Industry


IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help

US health sector's job growth slows with 797,000 total lost since February

After rebounding from losing 1.4 million jobs in April and adding over 300,000 jobs in both May and June, the healthcare industry slowed to just 125,500 additions in July.

The month's gains were once again led by 126,200 additions in ambulatory healthcare services, according to an Aug. 7 report from the U.S Bureau of Labor Statistics. Offices of dentists and physicians had gains of 44,800 and 25,900, respectively, while offices of other health practitioners added 22,200 jobs.

Since February, the healthcare sector is still down 797,000 jobs despite three straight months of growth, according to the BLS.

The industry performed in line with expectations, with growth across most of the sector and a slowdown after large increases in May and June, Dante DeAntonio, an economist at Moody's Analytics, said in an interview.

"We saw the big rebound already happened, and now we're looking more for incremental improvements," he said. "I don't think we're going to get those huge jumps that we saw in May and June again at this point."

As the recovery slows, it could be one or two years before the final couple hundred thousand jobs return to the sector, according to DeAntonio.

SNL Image

While the healthcare industry's growth slowed down, an increase in hospitals' payroll is a bright spot for the sector, DeAntonio said.

Hospitals added 27,400 jobs in July, up from the 2,100 added in June. The sub-industry has been one of the slowest to recover after declines of 126,200 and 35,100 in April and May, respectively, as elective care was largely shut down across the country.

The sub-industry's growth was "very small relative to the size of that segment," but the increase was the first real movement in the subsector, according to DeAntonio.

Three top U.S. for-profit hospital companies HCA Healthcare Inc., Universal Health Services Inc. and Tenet Healthcare Corporation each reported on second-quarter earnings calls that procedure and admissions volumes improved over May, June and July, with July seeing nearly pre-pandemic levels.

However, after a rebound in the second quarter, executives for the hospital companies are seeing COVID-19 cases resurge and new hot spots emerge in their markets, which could affect the return of elective care.

Hospitals and the overall healthcare industry were protected a bit from cases spiking in July as elective care continued and there were not any broad shutdown orders, which should also help hospitals' payrolls going forward, DeAntonio said.

SNL Image

Unlike the hospital sector, nursing and residential care facilities continue to see declines, with 28,100 additional jobs lost in July.

Losses for the subsector may be partially due to a slower impact from the pandemic, DeAntonio said.

"The initial decline in payrolls was very, very small relative to the broader healthcare industry and relative to the broader economy," he said. "In total, nursing and residential care facilities is still down less than the overall healthcare sector and the overall economy even after those continued declines."

Also contributing to declines in the sub-industry are a drop in demand as the sector is hard-hit by the crisis and as people are keeping family members out of facilities, DeAntonio said.

Overall, the U.S. added about 1.76 million jobs to nonfarm payroll in July, and the unemployment rate fell to 10.2% from June's rate of 11.1%.

"This month represents a significant slowdown from the pace of the recovery that we saw in June, which is not good news," DeAntonio said. "But on the bright side, given a lot of the other data that's been floating around out there ... the number actually came up stronger than I was expecting."

While July's additions are a good thing and the U.S. had a third straight month of growth, total recovery could still be a ways away, according to DeAntonio.

"We were still very far in the hole in terms of total jobs that have been lost, and the pace of that recovery continues to slow," he said. "It's going to take a very long time to recover those lost jobs."