Labor Market Research
Labor Market Research
The Utah labor market for nurses is decreasing; the supply is not meeting the demand. As the number of baby boomers reaching retirement age increases the need for nurses in the geriatric field increases as well. The current supply of registered nurses is not meeting the demand brought on by the increase in the number of elderly citizens in Utah. Wage does not appear to be linked to the decrease in the nursing labor market. The Bureau of Labor Statistics (BLS) lists the mean annual wage for registered nurses in Utah as $57,280; the mean wage for all occupations is at $35,540 putting nursing above the average income (bls.com, 2006).
The wage structure in nursing can be determined in three ways. Job based: The pay is determined by the value and responsibilities of the job. The pay is adjusted according to each job; individuals who meet certain job expectations receive the pay adjustment. This structure has little reward for those who respond to the demands of a changing work environment. Performance based: Pay is determined by the performance of the individual and is adjusted according to productivity. This structure works best when employees value pay and there is a link between effort and performance. Skill based: Pay is based on skill and knowledge. The pay is adjusted according to how many skills an employee may develop or by the knowledge they acquire. This structure can encourage an employee to continue learning but can also be costly for the employer because of the training costs (bls.com, 2006).
With the nursing wage being at a decent rate for the state of Utah, income is not cause for the decrease in supply. One reason for the decrease in supply is that there is not enough educational funding in this field. Without sufficient funding there is not a large enough pool of new nurses to meet the demand. The lack of funding causes a shortage in faculty and facilities that are needed to train future nursing staff. Another reason the supply