Outpatient care gets walloped by COVID-19 in March job losses

Dentists' offices, physicians' offices, home health providers and other outpatient healthcare sectors shouldered the brunt of healthcare's steep job losses in March as the novel coronavirus ravaged the economy and forced businesses to shed workers.

The healthcare industry shed 42,500 jobs last month. The ambulatory sector, which typically captures most of the industry's job gains, in March comprised a whopping 96% of the losses, according to preliminary data from the U.S. Bureau of Labor Statistics, released Friday. Hospitals added a modest 200 jobs.

Healthcare had enjoyed years of steady job growth, including an estimated 31,600 jobs in February, 35,000 in January and an eye-popping 50,200 new hires in December 2019.

Healthcare's decline was a fraction of the month's total nonfarm job losses, which amounted to 701,000 as businesses temporarily—or permanently, in some cases—shut their doors to the public to slow the virus' spread. In the prior 12 months, employment had grown by an average of 196,000 jobs per month.

The overall unemployment rate increased 0.9 percentage points to 4.4%, the largest month-over-month increase since January 1975. The number of unemployed people jumped by 1.4 million to 7.1 million in March, measuring the effects of the coronavirus and the efforts to contain it, the BLS said.

Within the ambulatory sector, dentists' offices reported the biggest drop: 17,200 fewer jobs in March. Second place was physicians' offices, having shed 12,000 jobs. That's after physicians' offices added an estimated 9,500 jobs in February ahead of the epidemic's effects. Offices of other health practitioners shed 6,600 jobs.

Home health also had a rough month, having lost 5,900 jobs. Other ambulatory healthcare services lost 3,100 jobs, while medical and diagnostic laboratories shrunk by 1,100 jobs.

One sector that was miraculously unphased was outpatient care centers, which amid the turmoil managed to make 5,200 new hires.

Hospitals, similarly, added 200 jobs. While far from a strong month, they hospital sector was unique in managing to avoid losses. Hospitals added an estimated 7,800 jobs in February.

Nursing care facilities lost 1,800 jobs in March, and community care facilities for the elderly shed 1,500. Residential mental health facilities added 1,300 jobs.

Across the broader economy, two-thirds of the overall job losses occurred in leisure and hospitality, which shed 459,000 jobs. More than 91% of those were in food services and drinking places. Employment in professional and business services declined by 52,000 jobs in March, and retail trade lost 46,000 jobs. Construction lost 29,000 jobs.