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As the nation’s companies reopen, the economic effects of the early epidemic have begun to rebalance. At the start of COVID-19 in the spring of 2020, the health industry, like the rest of the economy, witnessed a dramatic reduction in revenues and employment. As physicians canceled elective treatment and consumers exercising social distancing avoided health facilities, usage of health services plummeted. Health-care usage has been lower than predicted in the years leading up to the pandemic, and healthcare employment has stayed below pre-pandemic levels. 

Decline of the Healthcare in the US

The United States boasts one of the most advanced healthcare systems in the world. The country’s healthcare sector, like that of all other economies, is vulnerable to COVID-19 due to high healthcare prices and insufficient medical capacity. Other nations with comprehensive healthcare, unlike the United States, are testing more people for COVID-19 and appear to be battling it more effectively. 

Northern Italy has one of the greatest public healthcare systems in the developed world, with well-trained medical workers and physicians. Previously, the region had demonstrated readiness for COVID-19; but, in the current situation, the country’s healthcare system has been strained. 

COVID-19 has mostly impacted frontline healthcare employees, such as medical professionals. COVID-19 has impacted 20–30% of healthcare personnel in Italy, with 2,500 fatalities and over 31,500 confirmed cases in just one month. On March 8, Prime Minister Giuseppe Conte declared a lockdown of Italy’s Lombardy area, essentially quarantining nearly 16 million people in the north, as a way to relieve the strain on the healthcare system. 

As the nation’s companies reopen, the economic effects of the early epidemic have begun to rebalance. At the start of COVID-19 in the spring of 2020, the health industry, like the rest of the economy, witnessed a dramatic reduction in revenues and employment. As physicians cancelled elective treatment and consumers exercising social distancing avoided health facilities, usage of health services plummeted. Health-care usage has been lower than predicted in the years leading up to the pandemic, and health-care employment has stayed below pre-pandemic levels. 

Impact on Health employment

Jobs in the health-care industry have historically been largely recession-proof. During the Great Recession, for example, employment in the health industry increased from 13.1 million in December 2007 to 13.4 million in December 2008, and then 13.7 million in December 2009, despite considerable cutbacks in most other sectors.

 

 

The COVID-19 Recession, on the other hand, was rather different: when lockdowns expanded across the country, health-care jobs, like those in other industries, plummeted. Even still, job losses in the health sector were not as severe as those in the rest of the economy. Health employment declined by 9.3% from the previous month in April 2020 (an historic loss), while non-health employment fell by nearly 14%.  

In February 2020, total health employment was 16.5 million, but by April, it had declined to 14.9 million. 

The coronavirus pandemic has had a significant influence on the healthcare industry, particularly pharmaceuticals and medical equipment. During the first quarter of 2020, the sector’s growth rate has slowed. It will take two to three years for everything to return to normal, at which point the mitigation methods will be fully operational. Until then, the healthcare industry is anticipated to remain stagnant.