In recent years, the demographic structure of the United States has undergone a significant change, with a sharp increase in the elderly population. This has led to a growing demand for elderly care and nursing services. However, due to the challenging nature of caregiving work and low wages, the labor market is struggling to meet this demand. Experts suggest that elderly care is a rapidly growing field with the potential for further expansion if adequate resources are allocated.
According to recent data from the U.S. Census Bureau, the proportion of Americans aged 65 and older has increased from 12.4% in 2004 to 18% in 2024. In 11 states, the number of elderly residents has surpassed the number of children, a significant shift from only 3 states experiencing this in 2020.
The labor market has failed to keep pace with the aging population. As the shortage of caregivers widens, the demand for caregiving personnel is skyrocketing.
Harvard Public Health predicts that by 2032, there will be a shortfall of 4.6 million positions for home care workers.
McKnight’s Senior Living magazine found that the labor shortage in the long-term care industry is more severe than in any other healthcare sector, with a decline of over 7% in the workforce since 2020.
In an interview with CNBC, a woman shared that her mother was admitted to a rehabilitation center, unable to walk or even get out of bed, with no doctors on site. She mentioned that the center mainly had basic caregivers who only assisted with changing clothes and bedpans.
She highlighted the lack of doctors, registered nurses, physical therapists, occupational therapists, and other medical professionals necessary for comprehensive care.
Experts attribute the labor shortage to factors such as low wages, the challenging nature of the work, and limited opportunities for career advancement in caregiving roles.
Economist Jonathan Gruber from the Massachusetts Institute of Technology told CNBC, “This situation has led to a significant demand for long-term care.”
Gruber pointed out that the U.S. is entering a “peak demand” period due to the aging baby boomer generation, where the growth in demand is not aligned with wage increases, resulting in a “severe labor shortage.”
He also emphasized the demanding nature of caregiving roles, requiring caregivers to address various needs among the elderly and undergo extensive training, despite often receiving only slightly higher wages than retail workers.
According to the latest wage data from the Bureau of Labor Statistics in May 2024, the average hourly wage for home health and personal care aides is $16.82, while fast food and counter workers earn an average of $15.07 per hour.
Gruber stressed the need for establishing a more equitable healthcare system to address these challenges and support economic growth.
At the same time, the price of elderly care services is increasing at a rate higher than the inflation rate, according to the Bureau of Labor Statistics.
In September, the Consumer Price Index rose by 3% compared to the previous year, while prices for nursing homes and adult day care services increased by over 4%.
Brad Wilson, CEO of care.com, noted that the annual market size for elderly care ranges between $200 billion and $300 billion.
Gruber proposed three solutions to address the shortage of caregivers for the elderly in the U.S.: increasing wages, allowing more immigrants to fill these roles, and establishing better career advancement pathways within the industry.
He emphasized the importance of either offering higher wages to attract more caregivers or welcoming compassionate individuals willing to care for the elderly at current pay levels. He highlighted the need to tap into the global pool of caring individuals.
Gruber was personally involved in a program implemented in Massachusetts aimed at reducing nurse training costs, enabling nurses to advance to higher career levels, and alleviating the labor shortage.
Wilson recommended creating a separate job category specifically for elderly care to meet the demands of the market.
In response to the growing demand for elderly care services, Wilson’s company has introduced more options and developed a tool to assist families in finding the most suitable caregiving services based on their specific needs, becoming the fastest-growing segment of the company.
Wilson underscored the unique challenges of elderly care, stating that many families experience immense pressure when dealing with caregiving for the elderly. Unlike childcare, caring for the elderly often involves unexpected and complex situations that require immediate attention.
He pointed out that situations requiring care for the elderly are becoming increasingly common, especially with the surge in the aging population, adding strain to the so-called “sandwich generation” who must care for both elderly parents and young children simultaneously.
Citing data from the Census Bureau, Wilson highlighted that by 2034, the number of elderly Americans will exceed the number of children, indicating a crisis in elderly care that is often overlooked. He emphasized the need to raise awareness about this issue and share solutions to help more people.
(Adapted from CNBC reporting)