Table 1 Analytical framework on the short-term and strategic impact of economic downturns on the nursing labour market
Labor market indicator | Temporary/ short term | Strategic/ long term | ||
|---|---|---|---|---|
| Â | During an economic downturn | Potential reasons | Post economic downturn | Potential reasons |
Demand for nurses | Decrease | - Downsizing of institutional operations | Increase | - Need to recoup lost nursing jobs |
| Â | Â | - Budgetary constraints | (Slowly if jobless recovery & fast under full recovery) | - Services restored or expanded |
| Â | Â | - Service reductions | Â | - Need to replace retiring baby boomers |
Supply of nurses | Increase | - Nurses increase number of hours worked | Decrease | - Decreased enrollment in & graduation from nursing programs at time of recession |
| Â | Â | - Inactive nurses return to the labor market | Â | - Decreased labor force participation |
| Â | Â | - Multiple job holdings for some | Â | - Increased nursing dropouts from nursing labor market |
| Â | Â | Â | Â | - Difficulty in attracting nurses working in other industries or those that sought early retirement |
Nursing Salaries | Frozen or decreased | - Increased supply coupled with decreased demand | Increasing | - Decreased supply & increased demand |
| Â | Â | Â | Â | - Need to attract inactive nurses back |
Nursing turnover | Decreased | - Need for work with decreased family earnings | Increased | - More jobs available in the market |
| Â | Â | - lack of job vacancies | Â | - decreased need for work withincreased family earning |
| Â | Â | - Reduced likelihood that nurses leave their job | Â | - Stress and burnout |
Nursing shortages | Temporary perception of surpluses rather than shortages | - Disturbed labor market dynamic | Aggravated | - Supply–demand imbalances |
| Â | Â | - More supply less demand | Â | - Increased population needs |
| Â | Â | Â | Â | - Decreased proportion of active nurses |
| Â | Â | Â | Â | - Retiring baby boomers |