Growing Demand in the Healthcare Sector
By Lainey Stalnaker, Data Analytics Writer
Introduction
Healthcare is one of South Carolina’s most essential industries, due in part to its economic impact, but also because of the vital services it provides to people across the state. In quarter three of 2024, the healthcare and social assistance sector contributed over $19 billion to the state’s gross domestic product (GDP), which accounted for 7.1 percent of total GDP.[1] South Carolina healthcare providers employed an average of 232,000 people in 2023, making healthcare the fourth largest industry by employment.[2] We expect the healthcare industry will only continue growing as demand for healthcare services increases—largely as a result of South Carolina’s aging population.
In 2023, an estimated 18.5 percent of the state’s population was 65 or older, up 5.3 points from 13.2 percent in 2010.[3] See Figure 1, which shows projections for the proportion of South Carolina’s population that will be 65 or older through 2042. In 2025, people aged 65 or older are projected to make up 20 percent of the population, meaning one in every five people will be at least 65 years old. By 2042, this group is expected to make up 22.5 percent of the population, as depicted in Figure 1.[4]
As people age, they tend to require more healthcare services, driven in large part by age-related disabilities. 25.3 percent of people between the ages of 65 and 74 have some kind of disability, and this number rises to 46.9 percent for people aged 75 or older.[5] Ambulatory disabilities, which are those that impede walking or movement, are most common, followed by independent living disabilities. Hearing, vision, and cognitive difficulties are also common among this group. One in five people aged 65 or older has an ambulatory disability, and one in eight has an independent living disability. Figure 2 shows the rates at which people aged 65 and older experience different disabilities compared to the population aged 18 to 64.
Healthcare Occupation Projections
As a result of the aging population and their unique need for healthcare services, healthcare occupations are projected to be some of the fastest growing in the state.[6] The healthcare occupations expected to grow the fastest are nurse practitioners at 60.7 percent projected growth, physician assistants at 39.4 percent, and physical therapist assistants at 37.9 percent. Home health and personal care aides are expected to add nearly 11,000 jobs—the highest of all healthcare occupations. Registered nurses are projected to add 4,470 jobs, and medical assistants are expected to add 2,750. Overall, healthcare occupations are projected to add 41,310 jobs in South Carolina, with an average of 25,400 openings per year.