Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Hospital layoffs continuing
Health care has been a booming field. With baby-boomers aging, the demand for health care has been increasing. Young people who wanted to find a sure-fire job have been going into nursing and other medical disciplines knowing that the market for healthcare workers was growing. But that market suddenly changed in December due to the onset of Obamacare.
In order to hold down the costs of Obamacare, government administrators are placing price ceilings on government healthcare payments. Also, some healthcare consumers, facing higher costs for insurance, are cutting back on their elective procedures.
As a result of these two factors, hospitals are being forced to cut back on the services that they offer and are laying off workers. The result will be fewer hospitals and clinics and fewer services offered by the remaining hospitals and clinics. As healthcare supply decreases, customers will increasingly encounter long waiting times and other forms of healthcare rationing.
The last two monthly employment reports from the Bureau of Labor Statistics confirm that the new trend began shortly before I first spotted it in the December 20th American Thinker (Jobless Claims Up). After going up month after month, hospital jobs started declining in December from 4,797,500 in November to 4,792,800 in December to 4,788,300 in January (on a seasonally-adjusted basis).
An article in a Nevada newspaper explains why these layoffs are occurring (Problematic hospital funding leads to layoffs, reconsiderations):
So if you are about to go to school to study healthcare as a profession, think again. When you get out of school, you may be competing for the few jobs available with experienced healthcare workers that have been recently laid off.
Last 100 Years
Real Estate Taxation
Journal of Economic Literature:
Atlantic Economic Journal: