U.S. Healthcare Staffing Industry

The U.S. healthcare staffing market was valued at USD 20.5 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.69% from 2023 to 2030. This growth is being driven by several key factors, most notably the increasing demand for temporary staffing solutions to address the shortage of medical professionals. This demand is closely linked to the country’s growing geriatric population and a nationwide shortfall in qualified nursing staff, both of which are placing considerable strain on healthcare services and facilities.

One of the main contributors to this trend is the increase in life expectancy, which has resulted in a significant rise in the number of older adults. According to the U.S. Census Bureau, the population of individuals aged 65 years or older is projected to increase by approximately 80% between 2020 and 2030. Older adults typically require more frequent and intensive medical attention. For example, people over the age of 65 are about three times more likely to experience hospital stays and are twice as likely to visit a physician’s office compared to the general population. This demographic shift is anticipated to have a substantial impact on healthcare services, as older individuals are more vulnerable to chronic illnesses and lifestyle-related diseases, thereby increasing the need for medical staff.

The growing number of elderly patients is placing additional pressure on the existing healthcare infrastructure. According to the Association of American Medical Colleges, the United States is expected to face a shortage of physicians ranging between 46,900 and 121,900 by the year 2032. In addition, the American Nurses Association has estimated that the demand for nurses would reach 3.44 million by 2022, highlighting the urgent need for more qualified professionals in the healthcare sector. In response to this workforce gap, many hospitals, clinics, and other healthcare institutions are increasingly turning to staffing and recruitment agencies to help fill both temporary and permanent job vacancies. These strategic partnerships are playing a crucial role in maintaining continuity of care and operational efficiency, and they are expected to significantly contribute to the ongoing growth of the healthcare staffing market.

Curious about the U.S. Healthcare Staffing Market, Download your FREE sample copy now and get a sneak peek into the latest insights and trends.

Frequently Asked Questions About This Report

1. What is the U.S. healthcare staffing market?

The U.S. healthcare staffing market involves the recruitment, placement, and management of healthcare professionals across hospitals, clinics, home care settings, and other medical facilities. It covers temporary, travel, and permanent staffing for nurses, physicians, allied health professionals, and administrative staff.

2. What is the current size of the U.S. healthcare staffing market?

The U.S. healthcare staffing market is valued at tens of billions of dollars, with consistent growth driven by rising demand for healthcare services, workforce shortages, and the aging population. Temporary staffing, especially for nurses and allied professionals, forms a significant portion of the market.

3. What are the main segments in the healthcare staffing market?

The market is typically segmented into:

• Travel Nurse Staffing: Temporary placement of registered nurses to meet short-term needs.
• Per Diem Nurse Staffing: Day-to-day or short-notice nurse staffing solutions.
• Allied Healthcare Staffing: Includes physical therapists, medical technologists, radiologists, and more.
• Locum Tenens Staffing: Temporary physician or advanced practice provider assignments.
• Administrative/Non-clinical Staffing: Includes medical billers, coders, and healthcare admin personnel.

4. What factors are driving the growth of the healthcare staffing industry in the U.S.?

Key growth drivers include:

• Shortage of Skilled Healthcare Workers: Especially in nursing and rural areas.
• Aging Population: Increases demand for healthcare services and workers.
• Burnout and Turnover: High attrition in clinical roles creates need for temporary staff.
• Flexible Staffing Needs: Facilities are adopting more agile staffing strategies to control costs.
• Pandemic Aftermath: COVID-19 has intensified demand for travel nurses and crisis response teams.

5. What are the major challenges faced by the healthcare staffing industry?

Key challenges include:

• Workforce Burnout: Temporary staff often face demanding schedules.
• Wage Inflation: Rising labor costs reduce profit margins for staffing agencies.
• Regulatory Compliance: Agencies must meet strict credentialing, licensing, and legal standards.
• Recruitment and Retention: Finding and keeping qualified staff is increasingly difficult.
• Variable Demand: Demand can fluctuate seasonally or by specialty.

6. How has COVID-19 impacted the U.S. healthcare staffing market?

The pandemic drastically accelerated market growth by:

• Surging demand for temporary nurses and respiratory therapists
• Highlighting the need for flexible staffing models
• Driving digital transformation and adoption of telehealth staffing
• Causing mass resignations and increased reliance on travel staff

Even post-pandemic, the market continues to benefit from elevated demand for staffing support.

7. What role does technology play in healthcare staffing?

Technology is streamlining staffing operations and enhancing service delivery through:

• AI-powered Matching Algorithms: Improving placement accuracy and speed.
• Mobile Apps and Portals: Allowing clinicians to find jobs and manage shifts easily.
• Credentialing Software: Simplifies compliance and documentation.
• Workforce Analytics: Helps healthcare providers forecast demand and optimize staffing levels.

Order a free sample PDF of the U.S. Healthcare Staffing Market Intelligence Study, published by Grand View Research.