Early 2023 data is showing that healthcare labor costs are subsiding compared to 2021 and 2022, according to a new report from credit ratings agency Fitch.
Despite the good news for hospitals, the 2023 average hourly earnings growth of 4.7 percent still outpaces the 2.4 percent average increase in hourly pay for healthcare workers from 2010 to 2019.
Fitch attributed the jump in earnings to the conversion of contract labor to full-time workers, according to the June 12 report.
The report stressed that the healthcare sector's low unemployment and high quitting rates could lead to lingering labor cost inflation.