Industries Hurt Most By Health Care Costs

09/05/2009 05:12 am ET | Updated May 25, 2011
  • Rick Newman

A new study shows that some industries have become chronically hamstrung by rising healthcare costs, with lower growth and employment than they'd have if costs were lower--or somebody else paid them. Researchers Neeraj Sood, Arkadipta Ghosh, and José J. Escarce of the Rand Corp. analyzed the performance of 38 industries from 1987 to 2005 and found that sectors where a high proportion of workers have company-provided health insurance--such as manufacturing, utilities, communications, education, and finance--showed the lowest growth over the 19-year period. Industries where fewer workers get company-paid health insurance--such as agriculture, hotels, entertainment, retail, and construction--grew more.