Medicare Spending Cuts Could Lead to Job Loss of More Than 760,000 by 2021

The American Hospital Association, American Medical Association, and the American Nurses Association report that up to 766,000 healthcare and related jobs could be lost by 2021 as a result of the 2 percent sequester of Medicare spending required by the Budget Control Act of 2011.

According to a study by economic impact firm Tripp Umbach, anticipated cuts in Medicare payments will result in 496,000 jobs jobs lost during its first year. The report also found that the job losses will affect economic sectors beyond healthcare.

This is in contrast to the role the healthcare role usually plays. According to The Bureau of Labor Statistics, the industry created 169,800 jobs in the first half of 2012.