Healthcare Staffing Market -Trends, Size & Outlook (2024-2032)

Healthcare Staffing Market Synopsis:

Healthcare Staffing Market Size Was Valued at USD 39.48 Billion in 2023 and is Projected to Reach USD 72.28 Billion by 2032, Growing at a CAGR of 6.95% From 2024-2032.

Healthcare staffing refers to recruiting and supplying qualified healthcare professionals to healthcare facilities including hospitals, clinics, nursing homes, and other medical settings. Like any other industry or staffing service, it is also burdened with various challenges.

One of the challenges of healthcare staffing is ensuring a sufficient number of qualified professionals available to provide care. This can be particularly challenging in rural or underserved areas with a shortage of healthcare professionals. Healthcare staffing provides access to a diverse and extensive pool of candidates, which is often difficult for individual facilities to achieve on their own. The Staffing has established networks and databases of healthcare professionals, ranging from nurses and physicians to specialized technicians and support staff.

The World Health Organization emphasizes the pressing requirement of suitable healthcare worker staffing since low-income countries will face a shortage of 10 million health professionals by 2030. Universal health coverage remains out of reach while the delivery of essential health services becomes impaired due to this workforce deficit. Expanded educational support and training for medical staff along with equitable workforce distribution needs more funding to solve this problem. The successful long-term operation of worldwide health systems demands both worker retention programs and enhanced employee welfare standards.

Healthcare Staffing Market Growth and Trend Analysis:

Increasing Demand in the Healthcare Sector

• Multiple vital elements influence the current state of the healthcare staffing industry. The nursing industry faces an urgent shortage issue which forecasts 193,100 upcoming job vacancies every year. A positive development appears in nursing where new graduate enrollment expanded 36% between 2019 and 2023 to reach a total of 250,078 in 2023. The growing interest in nursing helps meet workforce demands while decreasing care provider exhaustion and strengthening the relationship between nursing staff and patient caseloads.
• In addition to registered nurses, the demand for nurse practitioners (NPs) and physician assistants (PAs) is rapidly increasing, with projected employment growth of 45% and 27%, respectively, from 2022 to 2032. Factors including an aging population, the need for greater healthcare accessibility, and the growing acceptance of team-based care models that integrate NPs and PAs with physicians contribute to this rise. These advanced practice providers play a crucial role in addressing healthcare workforce shortages due to their broad training, high patient satisfaction rates, and cost-effectiveness.
• Healthcare staffing platforms expanded drastically during the pandemic to become another substantial healthcare trend. A recent analysis shows travel nurse platform market revenue rose by an astounding 340% over the period from 2020 through 2022 while platform influence grew across every segment of the medical staffing industry during 2023. Allied staffing showed remarkable growth increasing from 14% in 2022 to 20% in 2023. Locum Ten's staffing platforms drove the greatest advancement during 2023 due to they represent next-generation technology-driven staffing solutions in the market.
• To adapt to these changes, staffing firms are evolving their value propositions by offering a broader range of workforce solutions. Managed Service Provider (MSP) programs alongside Recruitment Process Outsourcing (RPO) and executive search form one set of value propositions but companies also offer crisis staffing and international staffing solutions. Healthcare organizations continue to evolve but firms need to create talent retention and acquisition initiatives to stay competitive in an industry marked by growing patient needs.

Shortage of Qualified Healthcare Professionals

• The shortage of qualified healthcare professionals is a dominating factor restraining the worldwide market expansion. This issue has been influenced by various aspects, including increasing health system demands and the evolving nature of healthcare roles. All of these factors are demanding the supply of adequately trained professionals. For instance, the U.S. is expected to experience a shortage of over 120,000 doctors by 2030, with particular shortages in primary care and rural areas. Thus, the shortage of skilled healthcare professionals creates challenges in recruitment and training, which, in turn, impacts market growth

Leveraging Technology to Optimize Processes

• Recruiters can adopt cutting-edge recruitment platforms and technologies to enhance the efficiency of recruitment, onboarding, and scheduling processes. This approach can assist healthcare facilities in locating appropriate candidates more effectively, ultimately addressing the industry's supply and demand imbalance. CBREX not only resolves this issue for healthcare facilities but also offers recruiters a consistent flow of well-qualified requirements to fulfill.

Healthcare Staffing Market Segment Analysis:

Healthcare Staffing Market is segmented based on Service Type, End-Users, and region

By Service Type, Travel Nurse segment is expected to dominate the market during the forecast period

• Over the past few years, travel nursing has witnessed significant growth. The demand for travel nurses has steadily increased, driven by factors such as nursing shortages, an aging population, and the need for specialized healthcare services. As healthcare facilities struggle to maintain adequate staffing levels, travel nurses remain invaluable assets to fill critical roles.
• The Bureau of Labor Statistics predicts a six percent increase in registered nurse jobs by 2031, with an average of 203,200 job openings each year. In 2024, specialized travel nursing roles gain prominence. Areas such as telemetry, critical care, and psychiatric nursing are witnessing emerging trends, presenting exciting opportunities for travel nurses to expand their skills and knowledge. These specialized roles offer increased earning potential and contribute to improved health outcomes. Subsequently, this scenario is anticipated to continue in the coming years and is expected to dominate the market during the forecast period.

By End User, the Hospital segment held the largest share in the predicted timeframe

• Most hospitals create their staffing systems after following government-established regulations. Hospital facilities must maintain the standard nurse-to-patient ratios established by different government regulatory groups. The implementation of regulations focused on patients' needs results in increased hospital staffing due to growing patient demands.
• According to the U.S. Bureau of Labor Statistics, overall employment in healthcare occupations is projected to grow much faster than the average for all occupations from 2023 to 2033. About 1.9 million openings are projected each year, on average, in these occupations due to employment growth and the need to replace workers who leave the occupations permanently. reflecting the growing demand for healthcare services. Hospitals will continue to play a central role in addressing this increasing demand.

Healthcare Staffing Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America dominates the global market due to its strong economic dynamics, demographic trends, and advanced healthcare system. The region's robust infrastructure and substantial healthcare investments further fuel market growth.
• the U.S. Bureau of Labor Statistics reported in May 2023 that approximately 3,175,390 registered nurses are employed across the U.S., reflecting a substantial workforce available for staffing. 
• The level of job openings for the healthcare and social assistance sector has increased by 48% from 1.2 million in 2019 to 1.8 million in 2023, according to the Bureau of Labor Statistics. The scalability of the staffing platform model became a clear competitive advantage with an unprecedented spike in demand. The US staffing platform market for travel nurses soared by 340% from 2020 to 2022. Platforms represent more than 20% of US temporary staffing revenue for travel nurses, per diem, and allied. Accounting for the dominance of North America in the Healthcare Staffing Market.

Healthcare Staffing Market Active Players:

• Adecco Group (Switzerland)
• AMN Healthcare (United States)
• Aya Healthcare (United States)
• Barton Associates (United States)
• CGM Management, Inc. (United States)
• CompHealth (United States)
• CoreMedical Group (United States)
• Cross Country Healthcare (United States)
• FlexCare Medical Staffing (United States)
• Healthcare Staffing Professionals, Inc. (United States)
• Jackson & Coker (United States)
• LocumTenens.com (United States)
• Maxim Healthcare Group (United States)
• Medical Solutions (United States)
• MedPro Healthcare Staffing (United States)
• NurseFly (United States)
• SkillGigs (United States)
• Sunbelt Staffing (United States)
• TeamHealth (United States)
• Trustaff (United States)
• Other Active Players

Key Industry Developments in the Healthcare Staffing Market:

• In August 2024, Altrix Technology, a provider of healthcare staffing, acquired TFS Healthcare and Soleus People, suppliers of healthcare staff to the National Health Service and private healthcare providers in the UK.
• In February 2024, CHG Healthcare has officially launched two mobile apps MyCompHealth and MyWeatherby focused on creating a one-stop-shop for healthcare providers working locum tenens assignments. Locum tenens, or traveling assignments, give clinicians flexibility in when and where they work while helping hospitals and healthcare organizations maintain adequate coverage and avoid gaps in patient care