Healthcare loses 1.4 million jobs in April as unemployment rate hits 14.7%
Skip to main content
MDHC_Logotype_white
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • This Week's News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • MedPAC likely to recommend CMS simplify alternative payment models
      Medicare physician claims down 19% in first half of 2020 from pre-pandemic expectations
      Florida governor faces growing charges of vaccine favoritism
      Insurance regulator to issue warning on virus-test billing
    • Florida governor faces growing charges of vaccine favoritism
      Insurance regulator to issue warning on virus-test billing
      Sutter Health posts sizable 2020 loss, announces sweeping review of finances
      Accidentally trashed, thawed or expired: Reports of COVID vaccine spoilage
    • Shareholder group calls out HCA for alleged excessive emergency department admissions
      Metrologo 600x400_i.jpg
      MetroHealth forms Center for Cancer Research
      The Check Up: Dr. Marc Boom
      The Check Up: Dr. Marc Boom of Houston Methodist
      Dr. Marc Boom
      Q&A: Houston Methodist CEO praises staff efforts to keep vaccine efforts going during ice storm
    • Solid sign-ups for Biden's new Obamacare coverage offer
      OU Health Physicians, Oklahoma Blues plan fail to reach new contract
      Blue Cross NC claims costs rise thanks to COVID
      BlueCrossBlueShieldSign-main_i_i_i.jpg
      Michigan Blues post lowest operating profits in four years amid COVID-19 pandemic
    • MedPAC likely to recommend CMS simplify alternative payment models
      Florida governor faces growing charges of vaccine favoritism
      States rapidly expanding vaccine access as supplies surge
      Becerra taking heat for support of abortion rights
    • Sutter Health posts sizable 2020 loss, announces sweeping review of finances
      UPMC's patient volumes stabilize, boosting 2020 profits
      Genomics firms taking advantage of SPACs trend to go public faster
      COVID-19 could dent hospital revenue by at least $53 billion in 2021, AHA says
    • Insurance regulator to issue warning on virus-test billing
      351532635.jpg
      Red-hot virtual care market propels New York City health startups to record year
      Teladoc reports $383.3M in fourth-quarter revenue, up 145%
      man and woman looking at ipad wearing face masks stock image
      Sponsored Content Provided By Surescripts
      Improvements to benefits data can enhance ePrescribing and the patient experience
    • Accidentally trashed, thawed or expired: Reports of COVID vaccine spoilage
      Coronavirus deranges the immune system in complex and deadly ways
      Majority of small businesses not requiring vaccines, tests
      Highmark Health partners with Verily subsidiary on chronic care issues
    • Francoise_Adan1_i.jpg
      Cleveland's UH creates position of chief whole health and well-being officer
      Alicia Wilson
      Q&A: Emerging leader Alicia Wilson on staying close to home
      Michael Jordan, Novant team up to address health equity
      Former Ascension CEO, the first to lead the health system, passes away
    • Midwest
    • Northeast
    • South
    • West
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
    • The Affordable Care Act after 10 years
    • Dr. John Fischer
      Patient-reported outcomes tool for hernia surgery helps physicians improve care
      New care model helps primary-care practices treat obesity
      doctor with patient
      COVID-19 treatment protocol developed in the field helps patients recover
      Rachel Wyatt
      Project to curb pressure injuries in hospitals shows promise
    • What's next for on-demand telehealth companies?
      A CalOptima PACE vaccination clinic.
      Will COVID-19 be the catalyst for creating a more sustainable healthcare system?
      A map of the U.S. with images of the coronavirus.
      The digital divide becomes a new social determinant of health
      Ascension’s St. Mary’s Hospital Surgery Center at Towne Centre and Allegheny Health Network’s Bethel Park surgery center
      Hospitals see opportunity, risk in ambulatory surgery centers
    • Dr. Daniel Hall
      UPMC pilots machine learning, telehealth to inform patient transfers
      A woman being recorded using her inhaler on a smartphone.
      Digital check-ins, connected inhalers help control asthma
      A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • What's next for on-demand telehealth companies?
      Rising prescription copays drop adherence, spike mortality, research shows
      Dr. John Fischer
      Patient-reported outcomes tool for hernia surgery helps physicians improve care
      Highmark Health inks six-year cloud, tech deal with Google
    • Hospitals' Medicare billing practices suggest upcoding, OIG says
      California hospitals prepare ethical protocol to prioritize lifesaving care
      Amazon, JPMorgan Chase, Berkshire Hathaway disband Haven
      Digital pathways poised to reshape healthcare continuum in 2021
    • Dr. Daniel Hall
      UPMC pilots machine learning, telehealth to inform patient transfers
      A woman being recorded using her inhaler on a smartphone.
      Digital check-ins, connected inhalers help control asthma
      Humana partners with in-home provider for 24/7 care
      A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
    • MedPAC likely to recommend CMS simplify alternative payment models
      Bundled payments reduce surgery costs by 10.7%
      Coordinated payment policies could speed transition to value, experts say
      CMMI's geographic direct contracting model needs an overhaul, experts say
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
    • Health Systems Financials
      Executive Compensation
      Physician Compensation
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Dr. Alan Kaplan
      The risks, rewards of taking organizations 'where they haven’t gone before'
      Wellstar CEO calls adapting for the pandemic her bold move
      Howard P. Kern
      Recognizing the value of telehealth in its infancy
      Dr. Stephen Markovich
      A bold move helped take him from family doctor to OhioHealth CEO
    • Dr. Stephen Markovich
      Making sure we're aligned along the path to achieving inclusion
      Barry Ostrowsky
      Ending racism is a journey taken together; the starting point must be now
      Laura Lee Hall and Gary Puckrein
      Increased flu vaccination has never been more important for communities of color
      John Daniels Jr.
      Health equity: Making the journey from buzzword to reality
    • Vaccinating children could be the key to ending the pandemic
      Mikelle Moore
      The promising future of rural healthcare, even amid the COVID-19 pandemic
      In-person visitation must be part of the national COVID-19 response
      We've lost so much to the pandemic, but we've also made gains that will endure
    • Letters: Eliminating bias in healthcare needs to be ‘deliberate and organic’
      Letters: Maybe dropping out of ACOs is a good thing for patients
      Letters: White House and Congress share blame for lack of national COVID strategy
      Letters: VA making strides to improve state veterans home inspections
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Award Programs
    • Nominate
    • Previous Award Programs
    • Other Award Programs
    • Best Places to Work in Healthcare Logo for Navigation
      Nominations Open - Best Places to Work in Healthcare
      Nominations Open - 50 Most Influential Clinical Executives
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Minorities in Healthcare
      • - Luminaries
      • - Top 25 Minority Leaders
      • - Minorities to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • COVID-19 Event Tracker
    • podium march webinar logo lockup
      Sponsored Content Provided By Podium
      Webinar: Critical Touchpoints for Every Patient’s Journey — How Technology Plays an Important Role
      scp health logo lockup march 2021
      Sponsored Content Provided By SCP Health
      Webinar: COVID’s call to action — Reset for success in 2021
    • Women Leaders in Healthcare Conference
    • Social Determinants of Health Symposium
    • Healthcare Transformation Summit
    • Leadership Symposium
    • Virtual Briefings
      • - Hospital of the Future
      • - Mental Health
      • - Patient Safety & Quality
      • - Strategic Marketing
      • - Virtual Health
      • - Workplace of the Future
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Minority Leaders Gala
    • Top 25 Women Leaders Gala
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
    • Next Up Podcast: Educating patients on the COVID-19 vaccine with Tanya Andreadis
      Dr. Joseph Cacchione
      Next Up Podcast: Educating patients on the COVID-19 vaccine with Dr. Joseph Cacchione
      Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next four years
      Carter Dredge
      Next Up Podcast: Ready, set, innovate! Innovation and disruption in healthcare
    • Beyond the Byline: Insurers are betting on virtual-first plans as COVID-19 shifts care pathways
      Beyond the Byline: How residents' stories shape our coverage of the vaccination rollout in nursing homes
      Beyond the Byline: Regulators aim to boost value push with fraud and abuse law updates
      An older man wearing a mask receiving a vaccine.
      Beyond the Byline: Verifying information on the chaotic COVID-19 vaccine rollout
    • Outreach during COVID-19
      Leading intention promote diversity and inclusion
      Introducing Healthcare Insider Podcast
    • The Check Up: Dr. Marc Boom
      The Check Up: Dr. Marc Boom of Houston Methodist
      The Check Up: Dr. Imran Andrabi
      The Check Up: Dr. Imran Andrabi of ThedaCare
      The Check Up: Tanya Blackmon
      The Check Up: Tanya Blackmon of Novant Health
      The Check Up: Dr. Patrick Hwu
      The Check Up: Dr. Patrick Hwu of the Moffitt Cancer Center
    • ivana naeymi-rad one on one intelligent medical objects
      Video: Ivana Naeymi Rad of Intelligent Medical Objects
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
May 08, 2020 09:10 AM

Healthcare loses 1.4 million jobs in April as unemployment rate hits 14.7%

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Getty Images/iStockphoto

    Healthcare employment held remarkably steady during the Great Recession of 2008 and 2009. Not so with the COVID-19 pandemic.

    The healthcare industry lost 1.4 million jobs in April, preliminary data from the Bureau of Labor Statistics show. The numbers lay bare COVID-19's economic damage, as businesses shuttered amid stay-at-home orders implemented in mid- to late-March.
    The healthcare economy tends to be largely immune to reductions in consumer demand from income drops, said Neale Mahoney, a health economist at the University of Chicago Booth School of Business.

    "Here, I don't think the drop is driven by the fact that people have less money in their wallets," he said. "Yes, they have less money in their wallets, but the drop is driven by the fact that you can't go to a dentist in Chicago except for emergency procedures. It's really driven by the fear of COVID, not the income shock."

    The U.S. unemployment rate spiked to 14.7% in April, the highest rate since the Great Depression. Total nonfarm employment fell by 20.5 million jobs in April, much steeper than the 701,000 estimated job losses reported in March. Last month also saw the biggest unemployment rate spike since at least January 1948, when the BLS started tracking unemployment numbers. April's unemployment rate exceeded the Great Recession's unemployment peak of 10%.

    One point that should provide some relief: 18.1 million of April's unemployed workers—about 78%—reported being on temporary layoff, which the BLS said includes people who are furloughed. That holds open the likelihood that many will return to work once businesses reopen in their states.

    Countless hospitals, clinics and other providers have reported furloughing workers while they hold off on elective procedures in lieu of permanent layoffs. For-profit Tenet Healthcare, for example, announced it had furloughed 500 full-time equivalent positions in early April, none involved in patient care.

    Healthcare's 1.4 million jobs lost in April follows an estimated 42,500 jobs lost in March. The ambulatory sector comprised 82% of April's job losses.

    March marked a steep departure from what had been years of steady healthcare job growth, including an eye-popping 50,200 new hires in December 2019.

    It wasn't just healthcare—the economy had added an average of 196,000 jobs per month in the 12 months prior to March.

    Dentists' and physicians' offices were the hardest hit healthcare sectors in both March and April. Dentists' offices shed 503,000 jobs last month, while physicians' offices lost 243,000 jobs.

    In March, all but 3% of dental offices in the country closed to routine care, heeding a recommendation from the American Dental Association and the Centers for Disease Control and Prevention designed to preserve personal protective equipment for frontline healthcare workers and prevent further spread of COVID-19, said Marko Vujicic, the ADA's chief economist and vice president of its Health Policy Institute. By April, 45% of dental offices stopped paying all of their staff, and another 42% had rolled out partial layoffs or reduced work time, he said.

    "Hopefully it has contributed to reducing transmissions and flattening the curve and conserving personal protective equipment," Vujicic said, "but it has come at a cost financially."

    The good news, though, is that in the 28 states where dentists' offices were allowed to reopen this week, patient volume was at 28% of its pre-pandemic levels, he said.

    Dr. Craig Ratner, who runs a dental practice in Staten Island, New York, had to furlough all seven of his employees, six of whom were full-time. He's not sure when he'll be able to bring them back.

    Ratner expects many dental practices will have to close permanently, either because they can't afford to stay open or older dentists simply choose to retire.

    "I do know this is going to hit our profession very hard," said Ratner, president-elect of the New York State Dental Association.

    With respect to demand returning, Ratner said his practice has lots of patients who are in "desperate need" of cavity fillings and crown replacements. Other than that, he thinks it'll take 6 to 12 months for demand for routine and cosmetic care to return to normal.

     

    Offices of other health practitioners lost 205,000 jobs in April. Last month was also tough on the home health sector, which shed 93,600 jobs.

    Hospital employment shrunk by an estimated 135,000 jobs in April, even after hospitals came out of March largely unscathed.

    Palomar Health, for example, a two-hospital system based in Escondido, Calif., eliminated 317 positions last week, or 5.5% of its workforce, CEO Diane Hansen said on Thursday.

    Nursing care facilities lost 47,200 jobs in April, while residential care facilities shed 26,900 jobs. Community care facilities for the elderly lost 33,400 jobs.

    Healthcare employment hasn't been hit as hard as other sectors. Leisure and hospitality shed 7.7 million jobs in April, mostly in food services and drinking places. Healthcare job losses also trailed education, professional and business services and retail trade.

    April's job losses were more concentrated among low wage jobs, as evidenced by the fact that average hourly earnings increased by $1.34 in April to $30, according to the BLS.

    April's 14.7% unemployment rate also underestimates the actual number of unemployed workers because it likely doesn't count a large share of workers who have lost their jobs and aren't actively looking for work because of stay-at-home orders, according to an Economic Policy Institute analysis. Had those been counted, the unemployment rate would have been 19% in April.

    John Fanburg, managing partner at the law firm Brach Eichler and chairman of its healthcare practice, said he thinks healthcare will rebound faster than other sectors because people still need to get their knees replaced and seek treatment for cancer and heart attacks. The pace of recovery depends on whether there is a resurgence of COVID-19 cases once states reopen.

    "If it can stay contained, I believe healthcare job losses will bottom out and they'll begin to rebound in June and July," he said.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Sutter Health posts sizable 2020 loss, announces sweeping review of finances
    Sutter Health posts sizable 2020 loss, announces sweeping review of finances
    UPMC's patient volumes stabilize, boosting 2020 profits
    UPMC's patient volumes stabilize, boosting 2020 profits
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Minorities in Healthcare
          • - Luminaries
          • - Top 25 Minority Leaders
          • - Minorities to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Nominate
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Women Leaders in Healthcare Conference
        • Social Determinants of Health Symposium
        • Healthcare Transformation Summit
        • Leadership Symposium
        • Virtual Briefings
          • - Hospital of the Future
          • - Mental Health
          • - Patient Safety & Quality
          • - Strategic Marketing
          • - Virtual Health
          • - Workplace of the Future
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Minority Leaders Gala
        • Top 25 Women Leaders Gala
      • Webinars
      • COVID-19 Event Tracker
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing