Opportunity Newark - Initiative for a Competitive Inner City

Fig. 15: Composition of Newark’s Health
Services Employment
Healthcare Provider
Offices
12%
Drug Stores
5%
Other
1%
spending on all goods and services increased by 2.9 percent
in 2002 and 0.3 percent in 2003. In comparison, consumer
expenditures on health care increased by 7.7 percent in 2002
and 2.8 percent in 2003. 51 On a per capita basis, health care
spending increased by 7.4 percent in 2003 and is expected
to continue to increase as the population ages. 52
According to the U.S. Department of Labor’s Quarterly Census
of Employment and Wages (ES-202), employment in
the health sector grew at a compound annual growth rate
(CAGR) of 2.72 percent nationally and 2.09 percent in Newark
between 1998 and 2003 (see Fig. 16). 53
Home and
Residential Care
15%
Source: ES-202, 2003
Hospitals
67%
With more than 15,000 employees, Newark’s Health Services
cluster is the second largest employer in the city. 54
The local hospitals employ 67 percent of the city’s health
care workers (see Fig. 15); health care provider offices and
residential care facilities employ most of the remaining
workers in the cluster.
Newark has six hospitals and a network of primary care clinics,
both associated and independent from these hospitals.
This network includes the Newark Community Health Centers,
four federally funded primary care facilities, as well as
Fig. 16: Employment Growth in Newark Health Services Cluster
12,000
10,000
CAGR
2.0%
Cluster CAGR
(1998-2003) = 2.09%
Employment
8,000
6,000
4,000
2,000
-0.5%
4.3%
8.4%
1998
2003
-3.2%
Source: ES-202, 2003
0
Hospitals
Home & Resid.
Care
Healthcare
Provider Offices
Drug
Stores
Other
51 U.S. Bureau of Labor Statistics. Consumer Expenditures Survey in 2003. U.S. Department of Labor. 6/05.
52 Healthcare: Facilities. S&P Industry Survey. 12/04.
53 ICIC calculations based on U.S. Department of Labor. Quarterly Census of Employment and Wages ES-202 1998 — 2003. Note: Growth rates may differ
from other estimates due to variations in time periods or the industry classifications used to define the health services cluster.
54 Ibid.
OpportunityNewark: Jobs and Community Development for the 21st Century 36