This study investigates the effect of the Recession of 2007 on nurses' wages, demographics, human capital, and work environment characteristics using data from the California Board of Registered Nursing Surveys of 2006, 2008 and 2010. Findings suggest that the labor force is maximized, with nurses working as much as they can on their primary nursing positions (51 weeks a year). As the economy recovers, the nurse shortage will resurge. Intense focus in three policy areas is recommended: education, faculty training, and recruitment and retention of African Americans, Hispanics, and older nurses.