- Healthcare businesses are going strong in spite of slower hiring across the US economy.
- The Bureau of Labor Statistics found the sector added 399,000 jobs in 2019, compared with 350,000 in 2018.
- The hospitality industry improved slightly, while all other sectors had a weaker year in 2019 than the year before.
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The US economy may be slowing down, but healthcare businesses added 14% more jobs in 2019 than the year before, according to the latest jobs numbers from the Bureau of Labor Statistics.
Ambulatory health care services and hospitals added 399,000 jobs in 2019, compared with 350,000 in 2018, the BLS reported.
That signals an opportunity for entrepreneurs, who are looking for an economically strong industry to start a business.
Private or group practice health providers see some of the highest earnings among small businesses, with more than 34,000 medical and dental firms reporting between $1 million and $5 million in revenue, according to Business Insider’s analysis of data from the NAICS.
US health spending is expected to reach $6 trillion by 2027, and physician and clinical services spending is expected to increase 5.4% per year on average.
While healthcare has experienced significant growth, employment in other industries is slowing. The US added 145,000 jobs in December, coming in below expectations and continuing a trend of a slowing growth rate for businesses in the economy.
The 2.1 million jobs added in 2019 is down 22% from the gains of 2018, with all sectors except healthcare and hospitality posting lower numbers.
For example, while mining businesses lost jobs in 2019, one out of every five jobs created were in the healthcare industry. A separate BLS report projects that 8 of the top 12 growing job categories will health-related.
Economic demand for health services is also growing rapidly in spaces like home health aides, wellness brands, or prescription delivery companies. According to the Global Wellness Institute, the industry is worth $4.5 trillion worldwide.
The market is growing, as evidenced by several health care startups who are aiming to disrupt the traditional insurance model. Small businesses are also offering products and services to help people live healthier lives, from fitness gyms, to lightbulbs, to habit formation.
Health considerations increasingly matter to businesses in the food and beverage space, too. Consumers are more careful than ever about what they put in their bodies, and they are increasingly demanding options for plant-based foods, lactose-free treats, and alcohol-free beverages.
While most business owners may feel a sense of anxiety about the state of the economy, entrepreneurs in the health industry can continue to charge ahead.