Healthcare Staffing Market By Service Type (Travel Nurse Staffing, Per Diem Nurse Staffing, Locum Tenens Staffing, and Allied Healthcare Staffing), By End-user (Hospitals, Clinics, Ambulatory Facilities, and Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Healthcare Staffing Market Size is expected to be worth around US$ 82.3 billion by 2034 from US$ 45.1 billion in 2024, growing at a CAGR of 6.2% during the forecast period 2025 to 2034. North America held a dominant market position, capturing more than a 39.7% share and holds US$ 17.9 Billion market value for the year.

Increasing demand for skilled healthcare professionals is driving growth in the healthcare staffing market, fueled by rising patient volumes, workforce shortages, and evolving care models. The growing prevalence of chronic diseases, including diabetes, cancer, and cardiovascular conditions, is increasing the need for specialized medical staff across hospitals, clinics, and outpatient facilities. A 2024 report by the American Heart Association emphasized that cardiovascular diseases (CVDs) remain the top cause of mortality worldwide.

The increasing burden of heart-related illnesses has intensified the demand for skilled cardiologists, specialized nurses, and medical technicians to support comprehensive patient care and treatment advancements. Expanding telemedicine services and home healthcare models are creating new opportunities for remote and travel nursing positions, addressing workforce gaps in underserved areas. The rising adoption of value-based care is driving healthcare facilities to recruit multidisciplinary teams that enhance patient outcomes while optimizing operational efficiency.

Increasing reliance on locum tenens staffing solutions is helping hospitals and clinics manage physician shortages and fluctuating patient demands. The rapid digital transformation in healthcare is fueling demand for IT professionals and data analysts to support electronic health records (EHR) management, cybersecurity, and predictive analytics implementation.

Growing investments in healthcare infrastructure are leading to higher recruitment of administrative, allied health, and support staff to maintain operational continuity. The surge in demand for mental health services is accelerating the hiring of licensed therapists, counselors, and psychiatric nurses to address growing behavioral health concerns.

Rising government initiatives to improve healthcare workforce training and retention strategies are creating new opportunities for staffing agencies and healthcare recruiters. Increased integration of artificial intelligence in workforce planning is enabling healthcare facilities to predict staffing needs and optimize resource allocation.

The expansion of temporary staffing solutions is providing greater flexibility for healthcare professionals while meeting short-term labor demands. As hospitals and clinics continue to address workforce shortages and evolving patient care needs, the healthcare staffing market is expected to experience sustained growth in the coming years.

Key Takeaways

• In 2023, the market for healthcare staffing generated a revenue of US$ 45.1 billion, with a CAGR of 6.2%, and is expected to reach US$ 82.3 billion by the year 2033.
• The service type segment is divided into travel nurse staffing, per diem nurse staffing, locum tenens staffing, and allied healthcare staffing, with travel nurse staffing taking the lead in 2023 with a market share of 42.7%.
• Considering end-user, the market is divided into hospitals, clinics, ambulatory facilities, and others. Among these, hospitals held a significant share of 53.8%.
• North America led the market by securing a market share of 39.7% in 2023.

Service Type Analysis

The travel nurse staffing segment led in 2023, claiming a market share of 42.7% owing to the increasing demand for flexible, short-term staffing solutions. Healthcare facilities, especially those in rural or underserved areas, are facing staffing shortages and rely on travel nurses to fill these gaps.

Travel nurses offer the advantage of quickly meeting staffing needs without long-term commitments, which is highly attractive for healthcare facilities struggling to find qualified permanent staff. Additionally, the growing adoption of value-based care models, which require more adaptable staffing solutions, is expected to drive the demand for travel nurse staffing. The flexibility and availability of travel nurses to work in different healthcare settings will continue to fuel the segment’s growth in the coming years.

End-user Analysis

The hospitals held a significant share of 53.8% as hospitals face increasing pressure to maintain high-quality care while managing workforce shortages. Hospitals continue to experience rising patient volumes and an aging population, which requires additional staffing to meet demand. With the ongoing shortage of healthcare professionals, particularly nurses and physicians, hospitals are increasingly relying on staffing agencies to fill temporary or permanent positions.

The flexibility offered by staffing services, such as locum tenens and per diem staffing, allows hospitals to manage fluctuations in patient care needs while ensuring adequate coverage. As hospitals strive to maintain efficiency and quality care under financial and operational pressures, the demand for healthcare staffing services is expected to grow steadily.

Key Market Segments

By Service Type

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

By End-user

• Hospitals
• Clinics
• Ambulatory Facilities
• Others

Drivers

Rising Shortage of Skilled Healthcare Professionals Driving the Healthcare Staffing Market

Increasing shortages of skilled healthcare professionals are expected to accelerate demand in the healthcare staffing market. By 2030, the U.S. healthcare system is projected to face a deficit of more than 120,000 physicians, with the most significant shortages anticipated in primary care and rural regions. This growing gap underscores the need for expanded medical training programs and innovative staffing solutions to address the increasing demand for healthcare services.

Hospitals and clinics are struggling to fill critical positions, leading to increased reliance on staffing agencies to provide temporary and permanent healthcare workers. The aging population is driving greater demand for medical services, further straining the existing workforce. Travel nursing, locum tenens, and telehealth staffing are emerging as key solutions to bridge workforce gaps. Healthcare organizations are expanding partnerships with staffing firms to ensure continuity of patient care.

Technology-driven workforce management tools are helping facilities optimize staff allocation and reduce burnout. AI-powered recruitment platforms are enhancing candidate selection, streamlining the hiring process, and reducing administrative burdens. Many countries are increasing investments in healthcare education and workforce development programs to address long-term staffing challenges. Staffing agencies are also playing a vital role in filling vacancies created by early retirements and career transitions. As healthcare systems continue to experience workforce shortages, the demand for skilled professionals is likely to drive further growth in staffing solutions.

Restraints

Rising Labor Costs as a Restraint in the Healthcare Staffing Market

Increasing labor costs are anticipated to challenge the growth of the healthcare staffing market. Healthcare providers face rising expenses in recruiting, training, and retaining skilled professionals. Higher wages for nurses, physicians, and allied health workers are driving up overall operational costs for hospitals and clinics. Many healthcare facilities struggle to balance budgets while maintaining adequate staffing levels.

Contracted healthcare professionals often demand competitive pay and benefits, adding financial pressure on employers. Inflation and cost-of-living adjustments are further pushing salaries upward, impacting profit margins. Regulatory requirements related to minimum wage increases and mandatory overtime pay add to the financial burden. Healthcare organizations are seeking cost-effective staffing models, but maintaining quality care while managing labor expenses remains a significant challenge.

Opportunities

Rising Demand for Home Healthcare Services as an Opportunity in the Healthcare Staffing Market

Growing demand for home healthcare services is anticipated to create significant opportunities in the healthcare staffing market. In May 2021, AMN Healthcare strengthened its virtual care portfolio by acquiring Synzi, a telehealth and care management startup, for USD 42.6 million. This acquisition aimed to enhance remote patient monitoring and virtual healthcare delivery, aligning with the industry’s shift toward digital health solutions.

The aging population and preference for in-home medical care are increasing demand for skilled nurses and caregivers. Home healthcare services provide cost-effective alternatives to hospital stays, making them an attractive option for patients and insurers. The expansion of remote patient monitoring technologies is improving care accessibility, reducing hospital readmissions, and optimizing resource allocation.

Many healthcare providers are investing in mobile workforce management systems to streamline staffing and improve efficiency. Increased government funding for home-based medical services is driving industry expansion and attracting healthcare professionals to this sector. As home healthcare continues to grow, staffing firms are expected to play a critical role in meeting workforce demands.

Impact of Macroeconomic / Geopolitical Factors

Macroeconomic and geopolitical factors have a notable impact on the healthcare staffing market. On the positive side, rising demand for healthcare services due to an aging population and increased prevalence of chronic conditions contributes to the need for more healthcare professionals. Governments worldwide, especially in emerging markets, have been investing in healthcare infrastructure, further stimulating demand for skilled personnel.

However, economic slowdowns or budgetary constraints in healthcare systems can limit the hiring of additional staff, especially in non-urgent specialties. Geopolitical factors, such as trade tensions and regulatory changes, can disrupt the movement of healthcare professionals across borders, causing staffing shortages in certain regions. Despite these challenges, the ongoing global need for healthcare resources and technological advancements in recruitment continue to drive long-term growth in the market.

Latest Trends

Growth of Temporary and Contract-Based Staffing Driving the Healthcare Staffing Market

The growth of temporary and contract-based staffing is a recent trend driving the healthcare staffing market. High demand for flexible staffing solutions in healthcare facilities has led to an increasing reliance on temporary and contract workers to fill staffing gaps. Healthcare providers are expected to continue seeking short-term solutions to address fluctuating patient volumes and the urgent need for specialized expertise.

This trend allows healthcare organizations to adjust quickly to changing circumstances without committing to long-term contracts, thus improving operational flexibility. Rising healthcare workforce shortages in certain regions have further contributed to the demand for these temporary positions. In November 2023, Epic Staffing broadened its physician staffing services through the acquisitions of SBG Healthcare and Chicago Telerad.

These strategic moves expanded its focus beyond nursing professionals to include advanced practitioners and physicians, highlighting the growing need for specialized staffing solutions. The increasing trend toward temporary and contract-based staffing will likely continue to support the expansion of the healthcare staffing market.

Regional Analysis

North America is leading the Healthcare Staffing Market

North America dominated the market with the highest revenue share of 39.7% owing to increasing workforce shortages and rising demand for medical professionals. According to the U.S. Bureau of Labor Statistics, the healthcare sector requires an additional 275,000 nurses between 2020 and 2030 to meet growing patient care demands.

The aging population and expanding prevalence of chronic diseases further intensified the need for qualified professionals across hospitals, long-term care facilities, and home healthcare services. The adoption of telehealth and digital healthcare platforms created new job opportunities for remote and hybrid healthcare roles. Staffing agencies leveraged artificial intelligence and data analytics to streamline recruitment and placement processes, improving efficiency in filling vacancies.

Additionally, increasing wages and government incentives for healthcare workers enhanced job attractiveness and retention rates. Collaborations between educational institutions and healthcare organizations supported workforce development programs, ensuring a steady pipeline of skilled professionals. The continued expansion of private healthcare networks further fueled the demand for specialized medical personnel, strengthening market growth across North America.

The Asia Pacific region is expected to experience the highest CAGR during the forecast period

Asia Pacific is expected to grow with the fastest CAGR owing to healthcare expansion and regulatory reforms. The passage of India’s National Commission for Allied and Healthcare Professions Bill in 2021 highlighted the region’s commitment to standardizing medical education and improving workforce quality. Increasing investments in hospital infrastructure across China, India, and Southeast Asia are expected to create more job opportunities in the medical field.

Government initiatives promoting universal healthcare access are likely to accelerate recruitment efforts for doctors, nurses, and allied health workers. Collaborations between international staffing firms and local healthcare institutions are anticipated to enhance workforce availability and training programs. The rapid adoption of digital health services, including telemedicine, is projected to create new roles in remote patient care and virtual consultations.

Rising medical tourism in countries offering cost-effective treatments is expected to further drive demand for skilled healthcare professionals. Additionally, growing private-sector participation in medical education and workforce training is likely to support long-term industry growth across Asia Pacific.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Key players in the healthcare staffing market focus on expanding talent pools through digital recruitment platforms and AI-driven candidate matching. Companies invest in workforce management solutions to streamline scheduling, credential verification, and compliance tracking. Strategic partnerships with hospitals and clinics help address staffing shortages and improve workforce flexibility.

Emphasis on travel nursing, locum tenens, and telehealth staffing solutions drives market expansion. Many players also prioritize diversity and specialized training programs to enhance workforce quality and meet evolving healthcare demands. AMN Healthcare is a leading company in this market, offering innovative staffing solutions for hospitals, clinics, and healthcare organizations.

The company focuses on leveraging data-driven hiring tools and workforce analytics to improve efficiency. AMN Healthcare’s commitment to talent management and strategic workforce solutions positions it as a key player in the industry.

Top Key Players in the Healthcare Staffing Market

• VSee Health
• Trustaff
• TeamHealth
• IMN Enterprises
• Envision Healthcare Corporation
• Aya Healthcare
• AMN Healthcare
• Adecco Group

Recent Developments

• In December 2024: VSee Health expanded its telehealth network through a strategic agreement with Premier, Inc. This collaboration aims to strengthen VSee’s footprint in virtual healthcare services, highlighting the rapid growth of telemedicine and its role in transforming medical staffing solutions.
• In April 2023: IMN Enterprises launched MedAdventures, a specialized healthcare staffing firm offering tailored workforce solutions and career support for medical professionals. The initiative focuses on addressing the increasing demand for skilled healthcare personnel while enhancing employment opportunities in the sector.

Report Scope