Health Care Jobs In Demand in the Twin Cities

by Rachel Vilsack
October 2010

Health care is a major industry in the Twin Cities with more than 168,370 public- and private-sector jobs in ambulatory health care services, hospitals, and nursing and residential care facilities. Health care jobs represented 11 percent of total employment in the seven-county region in 2009. The industry also drives job creation with more than 79 additional jobs created in the state economy for every 100 direct health care service jobs.  Total wages paid to health care industry workers topped $8.7 billion, or 11 percent of total wages paid in the Twin Cities region in 2009.

The health care industry ranks first in terms of total employment in the Twin Cities region, surpassing the manufacturing sector by 7,070 jobs. By region in Minnesota, the largest concentration of health care employment is in the southeastern region where almost 24 percent of total regional employment is in the health care industry, led in part by the world-renowned Mayo Clinic. Compared to the nation, Minnesota ranked 10th in 2009, with 9.7 percent of the total workforce employed in health care-related occupations.

What Recession?

Employment in the health care industry has increased even during the economic recessions of the past decade (see Figure 1). Between 2000 and 2009 the health care industry added approximately 74,000 jobs in Minnesota, an increase of 27 percent. During the same time period, total jobs in the state fell by 1.5 percent.

In the Twin Cities, health care employment expanded by 47,040 jobs, or 38.8 percent, between 2000 and 2009. During the 2007 to 2009 recession the number of jobs in health care increased 4.1 percent with growth in virtually all health care industry sectors — led by growth in home health care services, residential care facilities, and community care facilities for the elderly (see Table 1). Reflected in these growth sectors is the trend toward an aging population and increased demand for health services, particularly for elder care. Since March of this year, Minnesota employers have added 9,500 net jobs in the health care and social assistance sector.

It should be noted that layoffs in health care do and have occurred, despite net job growth. In the first eight months of 2010, 9,640 initial claims for unemployment insurance were filed from individuals in the Twin Cities who were previously employed in the health care and social assistance industry. This represents about 9 percent of total initial claims filed in the first eight months of 2010. In general, initial claims for unemployment insurance have been on the decline for most industry sectors. As an example, initial claims in health care and social assistance have dropped 7 percent between August 2009 and August 2010.

With layoffs in the health care industry, it is clear that this sector has not been immune to the recession. Recent newspaper headlines have also remarked on some regional health care facilities with plans to reduce their workforce.

Job opportunities in health care remain good relative to other industries. With approximately 5,170 vacancies during second quarter 2010, the health care and social assistance sector has the largest number of job openings among industries, representing one in five job openings in the Twin Cities. Large numbers of job openings were found for home health aides (830), registered nurses (560), nursing aides (400), and LPNs (270) (see Table 2).

Job vacancy rates measure the number of job openings relative to total employment in the field. High job vacancy rates were found for psychiatrists (15.1 percent), physical therapy assistants (10.1 percent), emergency medical technicians and paramedics (9 percent), and internists (7.9 percent). This type of measure identified the high demand that may exist for an occupation that is not accounted for by the number of job openings. In the case of physical therapist assistants, only 33 job openings were recorded in the Twin Cities, but this number of openings represents nearly 10 percent of employment in the field.

Approximately 43 percent of job openings in the industry require some form of post-secondary training. Keep in mind that job openings in the health care industry include everything from direct patient care positions to office and administrative support, finance, management, and information technology occupations. One in three job openings in health care also requires related work experience.

With the onset of the recession in 2007 the number of job openings in health care professions lessened. In second quarter 2010 there were 18 percent fewer job openings in the health care and social assistance sector than in second quarter 2007, prior to the start of the recession. Over the past 10 years in which the Labor Market Information office of the Minnesota Department of Employment and Economic Development has analyzed job vacancy statistics, health care witnessed its largest number of vacancies during fourth quarter 2001 with more than 12,790 openings in the Twin Cities region.

While health care professions have a large number of opportunities relative to other occupations, it should be noted that these openings may require a specific specialty skill set or numerous years of experience. New graduates of health care professions may find strong competition for jobs and be at a disadvantage if they have no prior experience in the industry.

Wages for health care professions vary and correspond to the level of education and experience required. As seen in Table 2 starting wages for home health aides and nursing assistants were about $11.00 per hour in the Twin Cities. These occupations typically require short-term training and provide a good entry point into the health care industry and other health care careers. On the other hand, doctors require extensive medical training, and average wages are more than $80 per hour in the Twin Cities. Other examples include jobs as a registered nurse, which require a four-year degree and average $36.60 per hour, or medical records and health information technician jobs, which require a two-year degree and average $18.85 per hour. On average, workers in ambulatory health care services and hospitals earn higher wages than workers in nursing and residential care facilities in the Twin Cities.

Employment Outlook in 2010 and Beyond

Despite the decline in health care job vacancies over recent years, health care remains among the top areas for job opportunities. Health care occupations such as registered nurses, nursing aides and home health aides are listed among the top occupations in demand in all regions of Minnesota. Compiled for job seekers and dislocated workers, the list of occupations in demand is a semiannual analysis of the best job opportunities based on regional supplies of and demands for labor.

This past summer the Labor Market Information office released occupational and industrial employment projections for 2009 to 2019 for Minnesota. Job growth in the health care and social assistance industry in Minnesota is projected to expand by 26 percent between 2009 and 2019 and result in the creation of about 103,100 new jobs in the industry. In addition, many more jobs will be open from replacement hiring as individuals retire or otherwise leave their occupation. Regional projections will be available in fall 2010.

Between 2009 and 2019, registered nurses, home health aides, LPNs, nursing aides, and pharmacy technicians will require the largest numbers of new workers. The fastest growing health care occupations in Minnesota include physician assistants, projected to grow 44 percent, and home health aides, projected to grow 42 percent (see Table 3).

One issue not accounted for in the most recent state and national employment projections that should be noted is how the health care bill signed into law earlier this year will impact future employment trends in the health care industry. National and state models for employment projections preceded the signing of the bill. It is not known to what extent this may impact employment, specifically at an occupational level.

As an example, the American Recovery and Reinvestment Act of 2009 included a significant boost to the health care industry and its use of electronic health record technology. With a mandate that every U.S. citizen have an electronic health record by 2014, the goal of increasing medical record usage is no small task. The National Center for Health Statistics estimates that only 41.5 percent of physicians used all or part of electronic medical records systems in 2008.  To meet the demand for qualified and certified workers in health information management, monies were allocated to educational institutions to expand training capabilities, attract new entrants to the field, or enhance the skill set of existing health care workers. Four Minnesota colleges — Normandale Community College, University of Minnesota-Twin Cities, College of St. Scholastica, and University of Minnesota-Crookston — received grants to train workers to meet the demand starting in fall 2010.

The aging population has implications for the health care industry in Minnesota. Population statistics reveal that in 16 counties in Minnesota more than 20 percent of the population was 65 or older in 2005. In 2010 approximately 16 percent of Minnesota’s population is projected to be 65 years of age and older; that number will increase to 20 percent by 2020 and 26 percent by 2030. The demand for health care services will only increase as our population ages. Likewise, the health care industry will also face its own issues around replacing workers who are retiring
and finding employees with the right skill sets.

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