The nursing shortage

March 2004

Serious shortage projected
It's 2008 and Minnesota needs more than 7,000 new nurses. That may seem like an exaggeration, but it's not. Minnesota - like much of the United States - is on the verge of a serious shortage of registered nurses and licensed practical nurses that affects patients, health care facilities, business and the entire community.

An aging nursing workforce combined with stagnant graduation trends, increased staff turnover and greater employer demand have contributed to an acute shortage of registered nurses in Minnesota, according to a January 2003 Minnesota Registered Nurse Workforce Survey by the Minnesota Department of Health. The survey also found that an estimated 15 percent of active RN's planned to leave nursing in the next two years.

Approximately 2,400 registered nursing positions and 1,200 practical nursing positions in Minnesota are unfilled and the number of vacant positions is expected to more than double by 2008, a spring 2003 Minnesota Governor's Workforce Development Council Briefing Paper reported.

Factors contributing to the shortage include a "lack of programs and teachers to train enough students, a high retirement rate among existing health professionals, and an increasing variety of alternative job opportunities for women," according to the Minnesota Job Vacancy Survey, 4th Quarter 2002. According to the same survey, the employment estimate of total nursing jobs in Minnesota is as follows: 49,090 registered nurses; 18,500 licensed practical and vocational nurses; and 31, 250 nursing aides, orderlies and attendants.

Nursing education programs are expensive to operate, and tuition typically covers less than one-third of the cost of providing the programs in public colleges and universities.

Consequences of shortage
The consequences of the nursing shortage can be alarming, according to a January 2003 article "Healthcare Workers - A Shortage Revisited" in Minnesota Economic TRENDS, a bulletin published by the Minnesota Department of Employment and Economic Development. "When hospitals lack the staff to provide quality care to patients, general admissions shutdowns and extensive waits in emergency rooms may occur. Furthermore, hospitals and nursing homes struggle with increased costs when higher wages are used as the tool to recruit nursing staff. This can make hiring nursing staff particularly difficult for rural hospitals because they are forced to compete with the higher wages paid by urban hospitals."

Minnesota State Colleges & Universities works to meet the demand
The Minnesota State Colleges and Universities System, which produces 78 percent of the state's new nursing graduates, is responding rapidly to the shortage. The system's 32 institutions are working together to expand training programs, add online degrees and create innovative partnerships to train new nurses and help working nurses upgrade their skills. Some examples:

An English-as-a-Second-Language class to teach culturally-diverse nursing students to read and write in English to communicate effectively with patients/coworkers.
A "fast track" LPN program to employ displaced workers.
A college-business partnership to train, recruit and retain nurses in south central Minnesota.

System enrolls, graduates significantly more nursing students
The Minnesota State Colleges and Universities System nursing program administrators this fall reported the number of students enrolled in nursing increased 16 percent over fall 2002. A system survey showed more than 7,100 students this fall were enrolled in licensed practical nursing and registered nursing, including bachelor's and master's degree programs, an increase of about 980 students. Preliminary reports show 2,712 nursing degrees and diplomas were awarded in Fiscal Year 2003, a 19 percent increase over the Fiscal Year 2002 actual figure of 2,275. The figures include practical nursing diplomas and associate degrees, registered nursing associate and bachelor's degrees and nursing master's degrees.

Higher education/industry collaborations
Partnerships among the health care industry, education and the workforce development system have proven to be one of the most effective strategies for addressing the crisis in health care employment, according to the Briefing Paper. Minnesota's workforce service and training providers have multiple channels through which programs can respond to needs and demands. Numerous projects, supported by state, federal and foundation funding, have increased educational access and improved health care employment opportunities and careers.

Implications for the economy
The Minnesota Economic TRENDS article also states that based on the number of jobs, health care is among the five largest industries in the state. Its share of total employment continues to grow while employment in cornerstone industries such as manufacturing declined.

Solving the nursing shortage has implications for the health care industry and the state economy:

Nursing is a well-paying career, compared to the increasing number of low-wage service jobs being created. This increases self-sufficiency and decreases the need for assistance.
Nursing is a career that offers numerous and increasing job opportunities now and in the future.
Dislocated workers find good wages and job opportunities in nursing. This is particularly true in greater Minnesota and in rural areas, where job opportunities are limited.
Nursing also offers a professional career ladder. In other words, the field offers the ability for people to get degree, gain experience and then continue their education. For example, if a person cannot afford to get a bachelor's degree immediately, they can start as a certified nursing assistant, work in the field while getting a two-year registered nursing degree and then work while getting a four-year registered nursing degree. An individual can also pursue a master's degree and become an advanced practice nurse (nurse practitioners, clinical nurse specialists, nurse midwives and nurse anesthesiologists).

Nursing career progression and wages

Occupation	Average Hourly Wage
Occupation	U.S.	MN	Twin Cities
Nursing aides, orderlies, and attendants	$9.79	$11.16	$12.27
Licensed practical nurses	$15.39	$15.23	$16.45
Registered nurses (includes advanced practice registered nurses)	$23.58	$24.61	$25.58

Source: Based on the 1999, 2000 and 2001 Occupational Employment Statistics (OES) survey.

For a complete listing of nursing and health care programs in the system.

Contact: Nancy Conner, Public Affairs, at 651-296-0541 or nancy.conner@so.mnscu.edu for more information.