The Health Services Industry Continues to Grow

According to the U.S. Department of Labor, more than 469,000 establishments make up the health services industry; all vary greatly in terms of size, staffing patterns, and organizational structures. Two-thirds of all private health services establishments are offices of physicians or dentists. Although hospitals constitute less than 2 percent of all private health services establishments, they employ nearly 40 percent of all workers. When government hospitals are included, the proportion rises to 45 percent of the workers in the industry.

Employment in the health services industry is projected to increase more than 25 percent through 2010, compared with an average of 16 percent for all industries. Employment growth is expected to account for about 2.8 million new jobs added to the economy over the 2000-10 period. Projected rates of employment growth for the various segments of this industry range from 10 percent in hospitals, the largest and slowest growing industry segment, to 68 percent in the much smaller home health care services segment.

A recent report from the U.S. Small Business Administration finds that while most other industries are cutting back, home health care providers are still adding employees. Home health care companies employed 647,500 in 2002, up 1.8% from 636,200 in 2001, according to the SBA's "Small Business Economic Indicators 2002" report.

Employment in health services will continue to grow for a number of reasons. The elderly population, a group with much greater than average healthcare needs, will grow faster than the total population between 2000 and 2010, increasing the demand for health services, especially for home health care and nursing and personal care. Advances in medical technology will continue to improve the survival rate of severely ill and injured patients, who will then need extensive therapy and care.