The Grass is Green in the Nursing Field, but Will Employment Demand Exceed Supply?

As nursing students enter school this year, they are eager to learn what it takes to be a great caretaker for their future patients.  For those preparing for pinning ceremonies, there is a new anticipation that takes place and focus turns to job prospects. While there are many reasons students choose to enter nursing programs, their end objective is use those new skills to land a job.

Let’s start with the great news – The job outlook for the nursing profession is very promising.  According to a published report in 2009 by the US Bureau of Labor Statistics, more than 581,500 jobs will be created through 2018. In short, nursing will be the top job if measured strictly by growth potential.  Some investigation into the demand in a variety of markets shows there is a stark contrast in hiring pools within all states and regions throughout the country. The national average is about 8 nurses to every posted job opening.  As expected, the chart below lists the states with the highest employment level:

Interestingly, the states with the highest concentration of jobs are in Rhode Island with 12,430 positions and 27.73 positions per thousand jobs in the state; South Dakota with 10,690 positions and 27.58 positions per thousand jobs in the state; and Massachusetts with 85,120 positions and 27.29 position per thousand jobs in the state.  Although these states are much smaller in size and and scope there is great opportunity in overall employment. There are also major differences in metropolitan areas vs. non-metropolitan areas. Two major factors are employment opportunity and annual wages. The tables below illustrate these factors:

Metropolitan areas with the highest level of employment are:

Non-Metropolitan areas with the highest level of employment are:

The breakdown by states and regions only gives a partial view of where opportunity lies and where future growth is expected.  In the coming years, growth in hospitals is expected to slow in contrast to other healthcare industries. This may be due to hospital efficiency improvements with quicker discharge of patients and an increase in client procedures being done at outpatient facilities. We are already seeing an upward trend in home healthcare needs with an aging population more likely to be treated in home or at long care facilities, and the need for RNs will certainly increase.  Advances in technology and changes in consumer preferences will increase the ability of “in-home” healthcare providers to perform more complex care.

There are many benefits to a more educated workforce; even some major teaching hospitals nationwide are implementing BSN education requirements.   In general, nurses with a bachelor’s degree will have better job prospects than nurses without a bachelor’s degree.  Advanced degrees such as clinical nurse specialists, nurse practitioners, nurse midwives, and nurse anesthetists will be in high demand especially in low income areas.  Although the demand for nurses is increasing, qualified applicants to nursing schools are being turned away because of shortages in faculty. There will continue to be a need for qualified faculty as current teachers approach retirement age.  Turnover is higher in graduates with higher level degrees because they are being lured away from current positions.  For these nurses, signing bonuses, family friendly schedules and additional trainings are being used as powerful bargaining tools in the market for qualified nurses.

The true value of earning a BSN/MSN lies more in employment versatility than substantial income gain. This is especially important to note because retiring nurses, many who are from the baby boomer generation, are being given promotions into management and educational teaching areas. The retirement of this generation of nurse will leave a shortage in the workforce and increase a segment of the population that requires nursing care.  In 1980, approximately 50% of the nurse workforce was younger than 40 years old….currently, the number of nurses younger than 40 has declined to less than one-third of the workforce. It is estimated that by 2020, a 400,000 nurse shortage will arise which represents a 29% increase in job vacancy rates.  So while we continue to prepare nurses, the principle question will be, “Can we prepare a qualified workforce to meet the impending demand?”

Works Cited:

Bureau of Labor Statistics – National employment matrix (29-1111 Registered Nurses); Occupational Employment and Wages, May 2010; Summary of National employment matrix  http://www.bls.gov/

The impact of retiring baby boomers on nursing shortage by Karlene Alethia Richardson written for The Journal of Global Health Care Systems www.jghcs.info