This submit was written by Harry Margolis, a brand new contributor to the Squared Away Weblog.
I’ve been ringing the alarm concerning the coming elder care disaster starting in a couple of decade when the oldest child boomers begin reaching their late 80s. One of many largest challenges would be the scarcity of direct care employees.
PHI, a nonprofit that helps care employees, lately issued a report: Direct Care Employees in the USA: Key Information 2024. Listed below are a few of its findings:
- There are 5 million direct care employees, together with residence care employees (2.9 million), residential care aides (655,950), and nursing assistants in nursing houses (458,590), which symbolize 80 % of the whole (see Determine 1).
- The quantity grew by nearly 1.6 million during the last decade from 3.5 million in 2014.
- It’s anticipated to develop one other 860,000 by 2032.
- Dwelling care employees presently help greater than 9.8 million older adults and other people with disabilities dwelling at residence.
Low Pay
- Their median hourly wage was $16.72 in 2023 (see Determine 2).
- Because of the typically part-time nature of direct care work, median annual revenue is $25,015.
- Virtually half of direct care employees (49 %) depend on public help equivalent to Medicaid and SNAP advantages to make ends meet.
- Because of the low compensation and better compensation for different entry-level jobs, there may be vital turnover amongst direct care employees. Consequently, the report initiatives that there shall be 8.9 million direct care job openings between 2022 and 2032.
Feminine, Older, Folks of Coloration
- 84 % of residence care employees are girls (see Determine 3).
- 67 % are individuals of colour, though they make up solely 38 % of the U.S. workforce (see Determine 4).
- Their median age is 47, and 36 % are 55+ (see Determine 5).
- Immigrants make up 32 % of the house care workforce despite the fact that they represent simply 17 % of the U.S. labor pressure.
Total, the report tells us that we depend on a low-income, feminine, largely minority and immigrant workforce to take care of our aged and disabled residents. As the necessity for elder care grows, the competitors with different entry degree jobs equivalent to quick meals employees, cashiers, and inventory and order fillers will proceed to develop. Immigration coverage could have a big impact on the supply of direct care employees sooner or later.
Future Development
I used to be completely satisfied to see that the report consists of the projected development of the 85+ inhabitants as in comparison with the 65+ and 18-64 age cohorts (see Determine 6).
The 85+ inhabitants, and thus the necessity for elder care, will nearly double between now and 2060. Most of this development will happen between 2030 when the oldest child boomers shall be 84 and 2050 when the youngest will attain age 86. These twenty years would be the crunch time for elder take care of the USA, in addition to for different nations all over the world.
For extra from Harry Margolis, try his Risking Previous Age in America weblog and podcast. He additionally solutions client property planning questions at AskHarry.data. To remain present on the Squared Away weblog, be a part of our free e mail checklist. You’ll obtain only one e mail every week.