Healthcare sector loses steam in California

The L.A. Times reports:

Healthcare has long been one of the most reliable generators of new jobs in California. But a lousy economy has caught up with an industry once considered virtually immune to downturns.

The sector, which employs about 1 in 10 Californians, has stalled at a time when healthcare employment continues to grow nationally. Gone are the days when nurses received fat signing bonuses. Fewer hospitals are recruiting healthcare workers from abroad, as they did in the early part of the decade. Some are cutting workers' hours, reducing their benefits and even laying off staff.

The ailment: the Golden State's 12.4% unemployment rate, third-highest in the nation. So many Californians have lost their jobs — and their company-sponsored health insurance — that many are going without treatment. In addition, employers increasingly are shifting healthcare costs to their employees in the form of higher deductibles and out-of-pocket costs. That's leading many workers to skimp on doctor's visits and postpone elective surgeries. Meanwhile, California legislators are slashing some public healthcare spending in the face of yawning deficits.

It all adds up to an uncharacteristically tough job market for medical workers such as James E. Key, 22. The Panorama City resident worked as a licensed vocational nurse at an adult day-care center until the state facility was shut down in April because of budget cuts. Saddled with $18,000 in student loans, he's trying to make ends meet by fixing cars and computers. To save money, he lives with his brother and mother.

An article well worth your time.