Healthcare job cuts on the rise, less job openings

Editor's Note

According to a July 6 report from Challenger, Gray & Christmas, a global outplacement and business and executive coaching firm that examines job cuts by US-based employers, healthcare/products companies and manufacturers, including hospitals, announced 38,279 job cuts in the first half of 2023, which is up by 97% from the 19,390 cuts announced in the same period of 2022, Becker's Hospital Review July 6 reports.

Job cuts from US-based employers tracked by Challenger, Gray & Christmas totaled 40,709 in June, down 49% from 80,089 cuts in May, Becker's noted. Along the same lines, the US Bureau of Labor Statistics also reported May numbers on July 6, informing that job openings in the healthcare sector are slightly down compared to the previous month (1,725 openings in May compared to 2,010 in April) as well as compared to the previous year (1,987 openings in May 2022).

Andrew Challenger, labor expert and senior vice president of Challenger, Gray & Christmas, added the following caveat to the Challenger, Gray & Christmas report: "The drop in cuts is not unusual for the summer months. In fact, June is historically the slowest month on average for announcements. It is also possible that the deep job losses predicted due to inflation and interest rates will not come to pass, particularly as the Fed holds rates."