Healthcare Staffing Market (By Service Type: Travel Nurse, Locum Tenens, Per Diem Nurse, Allied Healthcare; By End user: Hospitals, Clinics, Ambulatory Surgical Centers, Home Care Settings, Private Sector) - Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

According to Nova one advisor, the global Healthcare Staffing Market Size was valued at USD 39.6 billion in 2022 and is predicted to be worth USD 65.8 billion by 2032, with a CAGR of 7.85% from 2023 to 2032. 

Key Takeaway

• Based on service type, the travel nurse segment accounted market share of over 35.5% in 2022.
• The locum tenens service segment is growing at a CAGR from 2023 to 2030.
• North America accounted highest revenue share of over 60% in 2022.
• The Asia Pacific market is growing faster over the forecast period 
• The U.S. healthcare staffing market was valued at USD 24.90 billion in 2022 and is expected to surpass around USD 36.19 billion by 2032 with a CAGR of 5.60% from 2023 to 2030.

The market is being driven by the increased demand for temporary nursing workers, particularly among the elderly, aiding the market growth in the coming years. The healthcare system currently is under pressure owing to the large geriatric population and increasing access to public health. This is increasing the focus on having well-trained healthcare staff in place. However, numerous countries are facing a shortage of healthcare staff. The gap between the healthcare demand and the supply of nurses and doctors in the healthcare system is widening.

The WHO estimates that there is a global shortage of 4.3 million physicians, nurses, and other health professionals. The scarcity is often starkest in developing countries due to the limited capacity and number of medical schools. Furthermore, the adoption of workforce solutions and an increase in demand for healthcare services, particularly at specialty hospitals & inpatient facilities, are likely to drive the market growth. During the COVID-19 pandemic, demand for staffing services and workforce technology solutions increased dramatically. The increasing incidence of COVID-19 infections significantly fueled the demand for travel and per diem nurses.

According to a poll conducted by Avant Healthcare Professionals, 90% of the medical facilities accepted using travel nurses for management of COVID-19 patients in 2020, compared to less than 60% in 2019. On the other hand, the demand for locum tenens specialists and allied health professionals decreased due to the cancellation of elective surgeries. North America held the majority of the market share in 2021. The market is witnessing a continuous increase in demand for healthcare professionals and a lack of skilled professionals at the same time. This rising shortage of healthcare workers is expected to have a direct impact on their salaries, resulting in a significant increase in salaries for various healthcare professionals, such as nurses

Report Scope of the Healthcare Staffing Market

Service Type Insights

Based on service type, the market has been segmented into travel nurses, per diem nurses, locum tenens, and allied healthcare. In terms of revenue share, the travel nurse segment dominated the market in 2022 with a revenue share of more than 35.5%. The rapid rise of the travel nurse staffing segment can be ascribed to quick service, cost-effectiveness, and a nurse shortage. This scenario is anticipated to continue in the coming years. Locum tenens is expected to witness the fastest growth rate during the forecast period. Employers’ cost-effectiveness and physicians’ demand for locum tenens work are two of the factors driving the market growth. Locum tenens are preferred by hospitals, groups, and clinics during peak seasons and when a permanent physician is on vacation or a sabbatical because it is more cost-effective.

Furthermore, due to the shorter period of the assignment, flexible schedule, travel opportunities, and diversified clinical experience, medical doctors/physicians choose to serve as locum tenens. Per diem nurses are paid daily and are hired for short-term assignments through specialized job placement firms or hospital staffing pools. The main reasons nurses choose per diem are the relatively high earnings and work flexibility. Due to spontaneous leaves, vacations, or high acuity, clinics, outpatient facilities, and hospital groups face both last-minute and temporary staffing demands. Per diem shifts can be scheduled through a staffing agency or with a hospital directly. Furthermore, some nurses take per diem jobs as a way to gather work experience in various hospital settings before accepting a permanent post.

Regional Insights

North America dominated the global market in 2022 and accounted for the largest revenue share of more than 60.00%. The local presence of key market players, a rise in the geriatric population, and the increase in demand for healthcare staff by hospitals owing to financial setbacks associated with hiring permanent staff are some of the major factors contributing to the largest share held by this region. Asia Pacific is expected to grow at the fastest CAGR during the forecast timeline, as demand for a contract workforce rises in the region. The increased demand might be linked to the fact that contract hire does not carry the obligations that are traditionally connected with permanent employees.

Furthermore, the recruitment process is faster, and recruiters have access to a bigger pool of prospects. Europe is witnessing a severe shortage of healthcare professionals in the past few years. The omicron waves of 2021, further worsened the scenario. According to European Public Service Union’s January 2022 estimates, Europe has a shortage of 2 million healthcare workers. Furthermore, according to the European Commission, employment in the healthcare sector is expected to rise to 24,009,000 professionals by 2025 with over half of the healthcare professionals expected to retire or leave the sector for other reasons. All these factors are likely to drive the market in the coming years.

Some of the prominent players in the Healthcare Staffing Market include:

• CHG Management, Inc.
• AMN Healthcare
• Almost Family
• Envision Healthcare Corporation
• inVentiv Health
• TeamHealth
• Maxim Healthcare Services, Inc.
• Cross Country Healthcare, Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Healthcare Staffing market.

By Service Type

• Travel Nurse Staffing
• Per Diem Nurse Staffing
• Locum Tenens Staffing
• Allied Healthcare Staffing

By End User

• Hospitals
• Clinics
• Ambulatory Surgical Centers
• Home Care Settings
• Private Sector

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Healthcare Staffing industry analysis from 2023 to 2032 to identify the prevailing Healthcare Staffing industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the global Healthcare Staffing industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Healthcare Staffing industry trends, key players, market segments, application areas, and market growth strategies.