Takeaway: Hospital employment growth of +2.9% YoY is the slowest since July of 2015, which continues to support our #ACATaper thesis and JOLTS model

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Gains

healthcare employment october 2016 +2.7% yoy

Healthcare employment growth for October 2016 was +2.7% YoY, down from its peak of +3.4% YoY in March of 2016.  This slowdown is in-line with our #ACATaper thesis and the approximate six-month lag with Healthcare Job Openings.  Hospital Employment growth was the slowest in the last 16-months at 2.9% YoY, after hitting a peak of 3.9% YoY in April 2016.  We believe hospital employment will continue slowing due to deteriorating admissions trends.  This supports our short thesis on both AHS and HCA as we continue to see further downside in both of these names.

Biotech employment is starting to rollover with growth of 5.8% in September compared to its peak of 7.5% in August of 2016 and consistent with recent price weakness in the IBB and XBI.  Offices of physicians employment was +2.7% in October, its slowest rate since May of 2015 and down from its peak of 3.6% in October of 2015.

Healthcare Job Openings (JOLTS) for September 2016 will be the next major data update related to our #ACATaper theme, and is scheduled to be released Tuesday, November 8th at 10AM.

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - HC Emp No

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Hosp Emp

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Emp Slows

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Physicians

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Bitech

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Pharma

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Med Equip

HEALTHCARE EMPLOYMENT SLOWS | #ACATAPER IN FULL EFFECT - Vet

Please call or e-mail with any questions.

Thomas Tobin
Managing Director


@HedgeyeHC

Andrew Freedman, CFA
Associate


@HedgeyeHIT 

Alexander Ross
Analyst