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This is the first in a two-part series on the worldwide problem of how to best care for our elderly.
It’s not a good time to be growing old in the developed world. And it is going to get significantly worse in coming decades.
The workforce problems that aged care faces in Australia are just as bad overseas. Indeed, you can read about the problems in aged care elsewhere in the world and they sound, note for note, exactly like those besetting us.
A Washington Post profile at the weekend looked at the huge problems America’s home senior care sector faces trying to find enough workers. There’s been a marked shift over the past decade among American seniors from residential care (nearly half of US nursing homes rank four or five stars, well above Australian levels) to homecare — a shift accelerated by the pandemic.
Governments everywhere have encouraged the shift to homecare, which costs less and accords with the lifestyle demands of baby boomers — but it comes with a price of services that are harder to regulate, an even more precarious workforce, and less government oversight.
In the US, nursing home staff requirements have fallen, and homecare staff numbers are nowhere near sufficient: even in smaller states like Minnesota, there are thousands of job vacancies. The US homecare workforce is about 2.6 million, and it will need another million workers in the next eight years to match the ageing of the population.
The stories from US aged-care providers are the same as here: the jobs — dominated by women, and women of colour — are among the lowest paid in the US workforce, and workers can earn significantly more working for Amazon or in the US fast-food industry — both of which have been forced to lift minimum pay rates dramatically due to low unemployment.
Aged care providers, like unions, have called on the federal government to fund higher pay for care workers; the Biden administration proposed a $400 billion funding increase but Republicans blocked it. The sector is pushing for a temporary three-year visa category to bring in 85,000 foreign care workers.
And as you go through the situations in aged care in other countries after the pandemic, it rapidly becomes clear that the same problems face most developed countries. And the same characteristics of aged care repeat themselves: low-paid jobs; mostly female workers; a reliance on migrant labour.
In Canada, there is an overall large shortage of health staff, and pay differentials, work precarity and COVID have caused massive shortages in the homecare workforce. The broader care workforce is also in crisis, with health agencies unable to spend emergency COVID funding due to lack of staff. Canada already relies heavily on immigration to supply care workers and health staff.
New Zealand faces a very similar aged care workforce shortage as Australia, with staff forced to undertake epically long shifts in understaffed facilities. As in Australia, nurses prefer to work for higher pay in public hospitals. The sector is calling for easier immigration requirements to encourage migrant workers.
Wherever you look it’s the same. European healthcare services more broadly have a massive shortage of workers, made much worse by the pandemic. Germany has a critical shortage of nurses and other health professionals in its health and caring services, and many Germans rely on an informal care industry that employs up to 600,000 Poles (mostly women) to provide in-home services, often in highly exploitative contracts.
In France the Macron government increased the minimum wage for care workers last year to €22 an hour to try to overcome severe shortages of carers for the elderly and expand the workforce by 10,000 (France is one of the few countries, along with Belgium and Spain, where the ratio of care workers to the elderly has increased).
In the Netherlands, aged care providers have taken to asking seniors’ families help look after them, and the government has launched an urgent plan to transform Dutch seniors care by keeping them at home and helping them digitally. In the UK, staff shortages are causing downgrades of nursing homes, with one in 10 care jobs vacant (it has increased from 8% at the end of 2021). Aged care workers in the UK earn less than café workers or Amazon warehouse workers.
In Japan, the paragon of rapidly ageing societies, growing care needs drove an insurance-based approach to aged care and the integration of health and aged care services, but the country, which faces an acute labour shortage, faces a shortfall of nearly 370,000 nurses and care workers. In Italy, another country with a rapidly ageing population, the care system relies heavily on eastern European workers — often working irregularly, as in Germany. And Chinese state media admitted in 2019 that China — where aged care is primarily provided by families — has a shortage of more than 10 million carers for disabled elderly.
Now, bear in mind that these are shortages that have developed over the past decade, exacerbated by the pandemic. In most OECD countries, there were fewer aged care workers per 100,000 elderly people in 2016 than in 2011, including in Australia. But the demand for aged care — either in residential facilities or in-home — is going to continue to increase.
Simply to keep the same ratio of care workers to the elderly as in 2016, by 2040 Australia will need more than 40% more care workers, according to the OECD — and that assumes productivity gains. Across the OECD, the figure is more like a 30% increase — and more than double that if productivity doesn’t increase — in a sector where productivity measurement alone is difficult, let alone productivity growth.
With a global shortage of care workers now threatening to become steadily worse over the next 18 years and beyond, tomorrow we’ll look at possible solutions.
Can the shortfall in aged care workers be remedied without huge pay rises? Let us know your thoughts by writing to letters@crikey.com.au. Please include your full name to be considered for publication. We reserve the right to edit for length and clarity.
Big mistake to privatise aged care. But the billionaires have to be kept on side so the pollies can get a post politics sinecure directorship or three.
The workforce shortage is economy-wide.
It is hardwired into the economy from 20+ years of wage stagnation, which NeoCon treasurers thought was the simplest and easiest way to keep the corporate sector onside and profits heading up.
Right now the median wage is $59k/yr; hardly enough to look after your own needs, let alone be the Main Breadwinner of a family unit that includes dependent children.
So it’s unsurprising that “parenting our future workforce” became a class divide; the average household income of a family with dependent children is $160k/yr, so very few of the bottom half earning something between a $1/yr and $59k/yr are also parents.
You can’t run half your workforce on subsistence wages and expect those on “good wages” to have the double the number of kids to compensate and head off your labor shortage.
Immigration can help, but not at scale.
What scale?
There will be about 320k workers permanently exiting our ageing workforce each year.
Local recruits is a function of average birthrate 20yrs ago (255k), less the poor sods that don’t make it (15k) and then factor in the Participation Rate of about 67% and you have 167k/yr local kids joining the workforce to replace the 320k leaving.
That happened in 2020, 2021 and in 2022 as well, but in 2022 slightly alleviated by immigration.
The problem is cumulative; the shortfall from 2020 carried across to 2021 making it 306k cumulative positions not replaced in 2021 and so on.
If an employer knows that next year they will need to hire 100 staff, the simple truth is that 50 of them are not in Australia right now.
It took us about 25 years to get into this pickle and will take about that long to get out of it.
Employer groups are still advocating for low/insecure wages whilst whinging about the worker shortage.
They just don’t get it.
Aged Care will unfortunately be at the end of queue when it comes to staffing up.
we’ve told our kids that if we don’t do it ourselves, then they should put us in a nursing home – we don’t want them spending their retirement (should such things still exist) struggling to look after us
Let them have a say in the decision. I don’t know your circumstances, but they may be happy to pay you back for the 15+ years they “struggled” to look after you.
It’s also not as civically selfless as you may think, roberto. ‘Someone’ is likely going to have to look after you, aren’t they.
Better your own kids and grand kids than an imported, temp visa student at $22 an hour, with no workplace conditions/citizenry recourse. The monetisation and ‘civic outsourcing’ by those privileged enough to be to afford it, of the basic village duty of looking after our vulnerable, has been a key causal/parallel factor in the coarsening of society.
‘No man is an island’ isn’t just a throwaway line about the well being of the would-be castaway. Like euthanasia, workplace conditions, pandemic safety, and much else…your personal aged care choices aren’t just ‘all about you’.
This is where you Boomers have got it so wrong, from your teens on.
Not sure why those who make the economic arguments about the need for pay incentives to attract talent are at a loss when it comes to this issue. Financial incentives are only good for people at the top, evidently.
Twas ever thus, the rich need to be paid more to choose to work but the poor should not be paid enough so that they must.
So it goes.
Maybe the point is moot anyway given how likely most ordinary people are to drown or burn over the coming few decades. Rather than face those fates or one of neglect in my dotage, perhaps it’s time to cancel the gym membership, resume smoking, eat bacon five times a day, and put my voluntary super contributions toward a nice drug habit.
Weird that this is probably the first time that so many people are glad not to be young and have to survive the onrushing future.
It is pretty bleak, but you can find similar views in times of plague, war, occupation etc. through history. Catastrophe so global is however new in recorded history. It’s a pity there are no diaries from the last ice age, that was a tough time.
I’m am progressively more relieved not to have children, and do occasionally look at my super and wonder how much of that I’ll get to use :/
Funny you should say that. I sometimes find myself fancying the thought of a sudden, fatal heart attack for myself over full time caring for my parents while juggling part time work, coming as it does right at the time I was working full time and expected it to continue. I’d had plans to maybe travel, maybe study- they’re all gone now. I’m stuck caring with no way out and because I’m a woman and “family” it’s expected of me by everyone.
It won’t last forever Kathy. I hope you get time to fulfil some dreams too.