The global healthcare staffing market size was valued at USD 31.8 billion in 2019 and is expected to register a CAGR of 5.4% over the forecast period. A significant rise in the geriatric population has been one of the major contributors to market growth over the past few years. Increasing awareness regarding the benefits of temporary staffing, job related perks, and availability of opportunities across the country are some of the factors contributing to market growth.
For the last few years, the healthcare industry is facing a shortage of skilled medical practitioners globally. For instance, according to the World Health Organization (WHO), in 2013, there was a shortfall of 7.2 million healthcare workers across the globe and the number is projected to reach 12.9 million by 2035.
According to the U.S. Bureau of Labor Statistics, the average annual income for nurses was around USD 75,000 in 2018. Moreover, increasing shortage of healthcare professionals is expected to increase the salaries of nurses, in-turn attracting more individuals to opt for a career in the field of healthcare staffing. The increased flow of healthcare professionals will help in enduring the problem of staff shortage.
Clinical experience at different locations, short-term assignments, travel opportunities, and flexible schedules are attracting travel nurses and locum tenens, further boosting the market growth. A survey published by Avant Healthcare Professionals stated that around 50% of hospitals in U.S. reported job openings for temporary nurses and over 60% of the hospitals were expecting retirements of nurses in 2019. Also, the trend of appointing travel nurses saw an increase of 7% in 2019. These factors are anticipated to significantly boost the demand for healthcare staffing in U.S.
By service, the market has been segmented into a travel nurse, per diem nurse, locum tenens, and allied healthcare. In 2019, the travel nurse segment held a majority of the market in terms of revenue share. In response to the rising pressure of healthcare costs, hospitals are forced to reduce their staff and hence, opt for staffing services to ensure that nurses are available when workload increases.
Locum tenens, on the other hand, are expected to witness the fastest growth rate over the forecast period. The cost-efficiency for employers and the preference of physicians to work as locum tenens are some of the factors responsible for the segment growth. According to a survey conducted by Staff Care, an AMN Healthcare company, the number of physicians working as locum tenens is increasing continuously in U.S.
The global healthcare staffing market was dominated by North America in terms of revenue share in 2019 owing to the presence of major players, lack of skilled professionals as compared to demand, and an increasing geriatric population. The market players are adopting strategic initiatives such as collaborations, acquisitions, and mergers in order to increase their network. Thus increasing market penetration is anticipated to propel the regional growth over the forecast period. For instance, Advance Medical acquired Rise Medical Staffing, a provider of travel nurse staffing services, in 2016. This will provide Advance Medical an opportunity to expand the travel nursing division and strengthen its foothold in hospital settings.
Asia Pacific is projected to witness the fastest growth over the forecast period as the demand for contract staffing is on the rise in the region. The rising demand can be attributed to the fact that employment through contract staffing involves no liabilities that are normally associated with permanent staff. In addition, the recruitment process is faster and recruiters can choose from a larger pool of candidates.
Some of the major players in the market are Almost Family; Adecco Group; CHG Management, Inc.; AMN Healthcare; Cross Country Healthcare, Inc.; Envision Healthcare Corporation; inVentiv Health; TeamHealth; and Maxim Healthcare Services, Inc.
Key players in the market are undertaking strategies such as mergers and acquisitions to expand the service portfolio and geographical reach in order to increase their market share. For instance, in February 2018, TeamHealth acquired Emergency Medicine Consultants (EMC), a provider of emergency medical staff. This acquisition will add EMC’s 80 advanced practice clinicians and 330 physicians to TeamHealth’s portfolio.
The growing influence of established companies through mergers and acquisitions and an influx of new healthcare staff providers is one of the primary growth stimulants for the market. For instance, Healthcare Staffing, Inc. (HCS) was acquired by Novation Companies, Inc., in August 2017. HCS is a provider of healthcare staff and has established strong business relations with service providers in Georgia. Thus, this acquisition is likely to assist in the expansion of Novation’s geographical reach and portfolio.
Report Attribute |
Details |
Market size value in 2020 |
USD 33.5 billion |
Revenue forecast in 2027 |
USD 48.6 billion |
Growth Rate |
CAGR of 5.4% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Service type, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; Japan; China; Brazil; Mexico; South Africa |
Key companies profiled |
Almost Family; Adecco Group; CHG Management, Inc.; AMN Healthcare; Cross Country Healthcare, Inc.; Envision Healthcare Corporation; inVentiv Health; TeamHealth; Maxim Healthcare Services, Inc. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global healthcare staffing market report based on service type and region:
Service Type Outlook (Revenue, USD Million, 2016 - 2027)
Travel Nurse Staffing
Per Diem Nurse Staffing
Locum Tenens Staffing
Allied Healthcare Staffing
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
U.S.
Canada
Europe
U.K.
Germany
Asia Pacific
Japan
China
Latin America
Brazil
Mexico
Middle East & Africa
South Africa
b. The global healthcare staffing market size was estimated at USD 31.8 billion in 2019 and is expected to reach USD 33.5 billion in 2020.
b. The global healthcare staffing market is expected to grow at a compound annual growth rate of 5.4% from 2019 to 2027 to reach USD 48.6 billion by 2027.
b. North America dominated the healthcare staffing market with a share of 58% in 2019. This is attributable to the presence of major players, lack of skilled professionals as compared to demand, and an increasing geriatric population.
b. Some of the key players in the market are Almost Family; Adecco Group; CHG Management, Inc.; AMN Healthcare; Cross Country Healthcare, Inc.; Envision Healthcare Corporation; inVentiv Health; TeamHealth; and Maxim Healthcare Services, Inc.
b. Key factors that are driving the market growth include a significant rise in geriatric population, increasing awareness regarding the benefits of temporary staffing, job related perks, and availability of opportunities.
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With Covid-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for Covid19 as a key market contributor.