Since the COVID-19 pandemic, healthcare businesses across the country have been grappling with severe labor shortages. Despite raising wages and offering more incentives, filling essential roles in healthcare remains a daunting challenge. So, what happened? Why are healthcare businesses struggling to find workers even as the pandemic has started to ease?

Let’s break down the key factors that have made it so difficult for healthcare businesses to find workers since COVID-19:

1. Government Stimulus Checks and Unemployment Benefits

One of the primary reasons for the labor shortage stems from the government’s response to the pandemic, particularly stimulus checks and expanded unemployment benefits. During the crisis, the U.S. government issued three rounds of stimulus checks, totaling $3,200 per individual. On top of that, unemployment benefits were boosted by an extra $600 per week, followed by $300 weekly until September 2021.

While these measures were essential to keep households afloat, they also discouraged many from returning to work. A University of Chicago study revealed that about two-thirds of unemployed workers were receiving more in unemployment benefits than they were earning in their previous jobs. For healthcare support roles, such as nursing assistants and home health aides, these payments often exceeded their wages. As a result, many workers delayed their return to the labor market, contributing to the healthcare staffing crisis.

2. PPP Loans and Business Challenges

The Paycheck Protection Program (PPP) was another significant initiative designed to help businesses keep employees on the payroll during the pandemic. However, the outcome wasn’t as straightforward for many small healthcare businesses. While PPP loans provided funds to retain staff, many employees still left the workforce, especially as the pandemic wore on.

Healthcare workers, particularly those on the front lines, were hit hard by COVID-19’s physical and emotional toll. Many of them either left the field due to burnout or shifted to less stressful roles in non-clinical sectors. Although the PPP loans helped keep businesses afloat, they didn’t prevent healthcare workers from seeking less demanding career alternatives.

3. Burnout and Career Changes in Healthcare

Burnout among healthcare workers reached unprecedented levels during the pandemic. A 2021 study by the American Medical Association found that 62.8% of healthcare workers reported burnout, a sharp increase from pre-pandemic levels. Long hours, patient deaths, and inadequate personal protective equipment (PPE) pushed many healthcare professionals to their limits.

The result? Many left the industry altogether. Frontline workers like nurses, physicians, and respiratory therapists were at the forefront of the COVID-19 battle, and once the pressure mounted, they re-evaluated their career paths. Telehealth, healthcare administration, and even entirely new industries became attractive alternatives, especially with the rise of remote work and more flexible opportunities.

4. Workforce Demographic Shifts

Another critical factor impacting healthcare staffing is the shifting demographics of the workforce. Many older healthcare workers opted for early retirement during the pandemic, especially those concerned about their personal safety. According to a Kaiser Family Foundation report, 1.2 million healthcare workers retired during the pandemic. This exodus left a massive gap in the industry, especially among experienced professionals.

At the same time, many women—who make up the majority of healthcare workers—left the workforce due to childcare responsibilities. When schools and daycares closed, many healthcare employees had no choice but to step back from their careers. Though some have returned, a substantial number have not, leaving healthcare businesses with a significant talent shortage.

5. Fierce Competition for Workers

As the economy reopened, industries outside healthcare began fiercely competing for the same workers that healthcare businesses desperately needed. Sectors such as e-commerce, delivery services, and retail started offering higher wages, sign-on bonuses, and more flexible work conditions to attract talent. For healthcare support staff, these roles often seemed more appealing, offering comparable pay without the emotional and physical strain of healthcare jobs.

In healthcare, the U.S. Bureau of Labor Statistics reported over 1.9 million unfilled positions as of 2023, with high demand for nurses, medical assistants, and home health aides. The competition for talent remains intense, driving up wages but still leaving many healthcare businesses struggling to fill critical positions.

6. Vaccine Mandates and Health Concerns

Vaccine mandates also contributed to staffing challenges in healthcare. Although vaccines were essential in controlling the spread of COVID-19, some healthcare workers opposed mandates for various personal or medical reasons. This opposition led to resignations in some cases or relocations to areas with fewer regulations.

Furthermore, ongoing concerns about COVID-19 variants and potential future outbreaks have caused many healthcare workers to hesitate about returning to jobs where they would be exposed to infectious patients, further straining the already stressed labor market.

Conclusion: Overcoming the Staffing Crisis

The difficulties in finding workers for your healthcare business since COVID-19 stem from a combination of factors. The influx of stimulus payments, expanded unemployment benefits, PPP loans, and workforce burnout, paired with shifting demographics and increased competition for talent, have created the perfect storm of staffing shortages in healthcare.

However, there is a solution. If you’re struggling to find healthcare workers, you don’t have to go it alone. MetaPRN is an innovative platform designed to help healthcare businesses connect with skilled professionals. Whether you need nurses, medical assistants, or home health aides, MetaPRN offers a streamlined solution to find the right talent for your business.

Visit www.metaprn.com and explore how we can help you fill those critical roles with qualified, compassionate healthcare workers today!