Introduction
The health care industry according to the NAICS is referred to as the health and social services industries providing individuals with social assistance and health care (2018). The grouping of the two has been made possible through the use of the new Health and Social Assistance sector. The order of arrangement in this industry is from the most intensive to those providing patients with minimal health care plus social assistance and lastly those providing individuals with social assistance only.
Health practitioners in the Ambulatory Health Care Services subsector provide outpatient services. The Hospital subsector has establishments that provide diagnostic, medical, and treatment services with outpatient services being a secondary activity. The Hospital subsector has establishments that provide patients with inpatient health services and integral parts of the production process comprises of specialized facilities and equipment.
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The subsector called Nursing and Residential Care Facilities provides residential care. Moreover, it is combined with nursing, or supervisory, or other care types. This subsector considers facilities as significant parts of the production process. Care provided in this subsector is of mixed health and social services. Assistance services accorded directly to clients is provided under the Social Assistance subsector and is on a short stay basis only no residential or accommodation services are availed.
Size and Growth Rate
The health care industry is seen to increase its real GDP to 4.2 percent after it had increase 9.3 percent. The increase enabled the industry become the second leading contributor to the economic slowdown experienced in America. The deceleration experienced was as a result of miscellaneous attributes like research and development. According to the U.S. Bureau of Economic Analysis, the real gross output of the industry increased 2.4 percent, which resulted from computer systems design and other related services (2018).
The Gross Output by industry indicates that the Health care and social assistance industry in 2018 registered 2498.4, 2538.9, and 2589.1 on a quarterly basis. The Ambulatory health care services were 1115.8, 1132.8, and 1154.3 respectively for the three quarters of the year. Hospitals sector was 915.2, 926.4, and 945.5. Nursing and residential care facilities had 254.7, 263.2, and 267.2 while the social assistance subsector registered 212.9, 216.5, and 222.1.
The % Change in GDP by Industry illustrates the following:
Health care and social assistance: 2.9, 4.5, and 6.5
The Ambulatory health care services: 11.1, 4.7, and 6.5
Hospitals sector:-2.1, 3.2, and 6.0
Nursing and residential care facilities: -7.1, 7.7, and 3.2
Social assistance subsector: -2.5, 5.5, and 7.6.
The health care and social assistance industry seems to be affected by the unemployment rate because people’s health choices are affected by their income levels. The economy may add thousands of jobs across different sectors where 12,000 of the 26,000 jobs added to the healthcare sector were associated with hospitals. The information is in accordance to monthly Bureau of Labor Statistics that showed this growth contributed to rates of unemployment falling from 3.9% to 3.7% (Porter, 2018).Unemployment rates were obtained by conducting a national survey of households.
|
Data series |
Back data |
Oct. 2018 |
Nov. 2018 |
Dec. 2018 |
Jan. 2019 |
|---|---|---|---|---|---|
| Employment (in thousands) | |||||
| Employment, all employees (seasonally adjusted) |
3,975.3 |
3,978.0 |
( P )3,984.6 |
( P )3,988.4 |
|
| Employment, production and nonsupervisory employees |
3,516.0 |
3,521.2 |
( P )3,522.8 |
||
| Unemployment | |||||
| Unemployment rate |
3.8% |
3.0% |
3.0% |
4.3% |
|
| Footnotes | |||||
In the future, this industry is bound to be flooded with healthcare professionals though some of them may be incompetent. The reason for this is because many of the individuals joining this industry are in it just for the money and not the values associated with the industry, that of restoring health to its patients, family members and other major stakeholders.
References
Bureau of Labour Statistics. Retrieved from https://www.bls.gov/
NAICS. (2018, Dec 3). Introduction to NAICS. United States Census Bureau . Retrieved from https://www.census.gov/eos/www/naics/
Porter, S. (2018, Oct 5). Healthcare jobs growth contributes to lowest unemployment in 49 years.
Health Leaders. Retrieved from https://www.healthleadersmedia.com/strategy/healthcare-
jobs-growth-contributes-lowest-unemployment-49-years
