1.4 MILLION HEALTHCARE JOBS LOST IN APRIL

The April 2020 jobs report published on May 8, 2020 showed a loss of 1.4 million healthcare jobs, or 1 in 12 healthcare jobs.  Although this may seem counter-intuitive in a pandemic, the reason is simple:  the virtual cessation of non-emergency procedures and routine care has meant significant reductions in revenues, and concomitant job losses for healthcare providers.  This problem arises in part because elective procedures are generally among the most profitable.

The largest job losses were in outpatient settings, such as physician practices, which lost 503,300 jobs, other healthcare practitioners, which lost 205,100 jobs, and other outpatient care centers, which lost 87,900 jobs.  But even healthcare providers involved in caring for COVID-19 patients were not immune. Hospitals shed 134,900 jobs and medical and diagnostic laboratories lost 31,200 jobs.

Despite the availability of Provider Relief Funds appropriated by Congress in the Coronavirus Aid Relief and Economic Security (CARES) Act, concern is growing among many analysts that healthcare job losses could continue as millions of Americans lose health insurance coverage as a result of losing their jobs during the pandemic.  This is of particular concern in rural and other communities where healthcare sector jobs comprise a large sector of the economy.   

The Department of Labor Bureau of Labor Statistics April 2020 jobs report is linked here.