Healthcare Staffing Market Share, Size and Growth Analysis By 2029

The healthcare staffing industry is projected to expand significantly, with estimates indicating growth from US$ 34.76 billion in 2021 to US$ 51.28 billion by 2028. This growth trajectory suggests a compound annual growth rate (CAGR) of 5.8% from 2021 through 2028.

Several factors contribute to this upward trend, primarily the rising demand for physician extenders and an increase in government initiatives aimed at improving healthcare access. Nevertheless, the persistent shortage of nursing professionals poses a significant challenge to the growth of the healthcare staffing market.

In recent years, the global healthcare landscape has encountered substantial difficulties due to a deficit of qualified practitioners. The World Health Organization (WHO) reported a shortfall of approximately 7.2 million healthcare workers in 2013, a figure projected to escalate to 12.9 million by 2035. In the United States, around 50% of hospitals indicated they resorted to temporary nurse hiring in 2019, as over 60% of their nursing staff were nearing retirement. This alarming trend underscores the urgent need for effective staffing solutions.

According to the U.S. Bureau of Labor Statistics, the average annual salary for nurses was about US$ 75,000 in 2018. The ongoing shortage of nursing professionals is anticipated to create new opportunities for growth within the healthcare staffing sector. Furthermore, the scarcity of healthcare workers is likely to drive up salaries, thereby attracting more individuals to pursue careers in this vital field.

Ensuring adequate staffing levels in healthcare facilities is crucial for maintaining a safe working environment for healthcare professionals and ensuring quality patient care. The ongoing COVID-19 pandemic has exacerbated staffing shortages, as healthcare workers face increased exposure to illnesses and other personal challenges. Consequently, healthcare facilities must proactively prepare for potential staffing deficits by implementing strategies and processes to address these challenges. Many are adopting contingency capacity plans in collaboration with human resources and occupational health services.

In the United States, which represents the largest market for healthcare staffing, the introduction of the Affordable Care Act (ACA) in 2010 has had a profound impact. This legislation provides consumers with subsidies, known as "premium tax credits," which help reduce costs for households earning between 100% and 400% of the federal poverty level (FPL). Such regulations have significantly influenced healthcare utilization rates.

The healthcare staffing market can be categorized based on service type and end user. In terms of service type, the market is divided into several segments, including travel nurse staffing, per diem nurse staffing, locum tenens staffing, allied healthcare staffing, and others. As of 2021, the travel nurse staffing segment commanded the largest market share. However, the locum tenens staffing segment is anticipated to experience the highest CAGR during the forecast period.

When examining the end user segments, the market is divided into hospitals and clinics, pharmaceutical companies, clients, and government agencies. In 2021, hospitals and clinics represented the largest share of the market, while the client segment is expected to achieve the highest CAGR from 2021 to 2028.

In preparing the report on the healthcare staffing market, several key primary and secondary sources were consulted, including the World Health Organization (WHO) and various government healthcare staffing agencies. These sources provide valuable insights into the current state and future prospects of the healthcare staffing industry.