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As double-digit unemployment continues to stymie economic recovery efforts, it's easy to get discouraged if you're out of work and looking for a new job. However, according to Forbes magazine, registered nursing is at the top of its recession-proof job list - an occupation that had an unemployment rate of a mere 1.4 percent in the fourth quarter of 2009.
However, according to results from ADVANCE's 2010 Salary Survey, nurses across the country and in Texas aren't totally immune to the economic decline. Some have lost benefits, others were forced to take pay cuts, suspend their retirement or have lost their jobs altogether.
That doesn't mean all the news is bad. Most Texas nurses still managed to receive pay increases over the past year. In fact, the average hourly rate for nurses in the Lone Star State rose from $30.82 to $33.53 in the past 12 months. When compared nationally, Texas ranks 11th overall in hourly pay rate for RNs, with the top five pay rates being reported in California ($45.06), Washington, DC ($42.90), Massachusetts ($39.88), New York ($38.29) and Delaware ($37.30).
Texas nurses who submitted their annual salary instead of hourly rates are also netting more than most - at earnings of $67,947- placing 10th highest in the nation.
Above Average
In comparing paychecks, it's a safe bet the average American nurse would be a little envious of the average Texas nurse. Consider this: last year the national hourly rate of our survey respondents was $32.49. This year, that rate dropped by more than $3.60 per hour to $28.88. That's nearly $5 less per hour than what Texas nurses told us they're making.
Salaried Texas survey respondents are also earning more than most nurses across the country. According to our survey, the average nationwide RN salary is $54,680; that's more than $13,000 less than what the average salaried nurse makes in the Lone Star State.
These numbers came as no surprise to nurse managers and human resource professionals ADVANCE spoke with, who cited numerous reasons for higher pay rates in Texas.
"One variable is the old localism 'everything in Texas is bigger,'" explained Joyce Winbush, RN-BC, CMSRN, of Medical City Dallas Hospital. "But actually, Texas is a healthcare-rich state. There are numerous opportunities . everything from the area of nursing you prefer, to the facility location or the numerous specialties that provides the nurses an opportunity to investigate and influence their salary. The facilities are left with developing ways to impress and recruit nurses to fill those positions in their companies. This bargaining power lends itself to increased salaries to bring the most qualified nurses into the area."
Robert Johnson, compensation manager at Harris County Hospital District, Houston, said supply and demand issues continue to favor Texas RNs when it comes to salary.
"It has been reported that due to nursing school capacity issues, including a dearth of nursing educators, Texas is only training and graduating half of its qualified nursing school applicants," he said. "Couple this supply issue with expanding demand from a rapidly-growing population, and you have a very tight labor market for nursing skills that forces hourly rates upward."
When compared to their neighbors, Texas nurses are fairing especially well. For instance, Louisiana survey participants report making nearly $7 less per hour than their Texas counterparts, while Oklahoma and Arkansas RN hourly rates are even lower, at an average of $24.70 and $21.95, respectively.
Of all Texas regions, nurses in the Bryan/College Station/Houston area made top dollar, with a reported average hourly rate of $40.34 and average annual salary of $79,929. Those numbers are significantly higher than what the hourly South Texas nurse nets. While that rate of $29.98 per hour ranks as lowest for the state, salaried South Texas nurses are doing quite well (average $63,378). This group finished higher than salaried nurses in Dallas/Fort Worth/East Texas ($63,075) and San Antonio/Austin/Central Texas ($63,075). However, hourly paid nurses in these metropolitan areas enjoy higher rates than those in South Texas with Dallas/Fort Worth/East Texas nurses making $31.07 and San Antonio/Austin/Central Texas nurses earning $30.20 per hour.
"The information in ADVANCE's survey accurately represented the numerous initiatives that play into determining the salaries within our region," said Winbush, who is manager of general surgery, urology and bariatrics and the Medical Surgical Express Admit Unit at Medical City Dallas. "I feel the impact may be related to the cost of living in those areas as well as the number of facilities, open positions and available nurses to fill those positions. Where there is a definite need, then the salaries will rise to match that need."
"The survey results are in line with the rates we track in the Houston area," Johnson concurred. "I do not believe that rates have declined year-over-year for more than a relative handful of RNs. I believe differences in survey samples would be a more likely explanation for that finding."
Difference a Year Makes
While salaries are up across Texas, just 54 percent said they've experienced a pay difference over the past 12 months, compared to 74 percent who replied "yes" to the same question last year.
However, of those who sustained salary decreases this past year, the cut wasn't as deep as it was for those in 2008. Of the former group, 38 percent said their salaries were cut by less than 5 percent, compared to 30 percent of the latter group. While this doesn't seem like good news, it is when you compare those who reported receiving a 5-10 percent decrease in 2008 (57 percent) vs. those who took a similar hit in 2009 (50 percent).
Still, even when nurses did receive a pay hike, it probably wasn't as much as they received in 2008. About half of our respondents who received a raise said they got a 3-5 percent increase, while another 44 percent said they received less than a 3 percent raise (only 30 percent said the same last year). Also, those who netted a 10 percent pay hike dwindled from 13 percent last year to 5 percent this year.
Family Matters
And while nurses across the country are enjoying better job security than those in other sectors of the workforce, that doesn't mean their family members have been as fortunate.
Seven percent of all surveyed Texas respondents said they reentered nursing over the past year. Of that number, 30 percent said they returned to supplement household income.
More than a third of our Texas respondents told us their overall family financial picture had changed in the past 12 months. Of that number, 21 percent said they or their spouse had lost their job, while 23 percent reported they or their spouse had decreased their work hours. Another 12 percent said they or their spouse had to take a salary cut.
Of the 9 percent who told us they had stopped working at some point during the past year, 26 percent reported they had lost their job, while just 8 percent retired. Nearly 40 percent of all respondents said their work plans had changed this past year due to the economy.
Of this group, 58 percent picked up additional hours or another job, 14 percent delayed going to school, 12 percent decided not to cut back on hours and 9 percent delayed retirement.
Texas nurses receiving employer-paid benefits fell by 6 percent this year, but a large majority (82 percent) of nurses still enjoy this perk. Of all respondents, 45 percent said at least some of their benefits have been reduced or eliminated over the past year.
"We are all seeing some changes from the facilities where we work, because businesses in today's economy are forced to take a look at what it takes to maintain their abilities to provide a service for the population that they serve," said Winbush. "With this in mind, there will be noticeable changes to the way things were done year over year."
Tom Kerr is ADVANCE editor.
For more salary survey statistics, go to page 2 to view charts and tables.
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