If you’ve ever considered a career in aged care, child care, or disability services, the time to act is now. Australia’s care economy is not just growing; it’s booming. It now makes up 15 percent of Australia’s workforce. This is up from 10 percent in the early 2010s. The care economy has experienced the fastest rate of growth in Australia over the last decade, just ahead of mining. This growth is expected to continue, with one-quarter of workers employed in Victoria over the next three years projected to be employed in the care sector.
It is now the largest employer in Australia, employing one in every seven Australians.
So, what is behind the growth of Australia’s care economy?
What’s behind the growth of Australia’s care economy
Firstly, it’s important to understand what constitutes the care economy. The care economy comprises people working in various industries, including aged and disability care, early childhood care, housing and wellbeing, and allied health support.
There are several factors that have contributed to its growth over the last few years.
The National Disability Insurance Scheme (NDIS) has played a pivotal role in the growth of the care economy in Australia. The scheme has significantly increased the demand for disability services in Australia.
Australians working in disability increased from 248,000 in 2016 to 534,000 in 2022 due largely to the establishment of the NDIS.
Another significant factor leading to the growth of the care economy is increasing demand for aged care and child care services. As the population ages and more women enter the workforce, the demand for these services has surged. Healthcare and education accounted for 44% of growth in the care sector in the last 12 months.
Higher pay has also made the care economy a more attractive prospect for many workers. Wages increased by 50% per hour between 2020 and 2024, second only to the utilities sector.
Australia’s population is rapidly ageing.
In the next 40 years, the number of Australians aged over 65 will double and those over 85 will triple.
To meet this demand, the number of people working in the aged care sector has grown significantly.
It is expected this growth will continue, with the number of aged care workers needed to double by 2050.
Many argue the growing care economy is necessary to provide the vulnerable with the level of care that the population expects. It also takes the pressure off unpaid carers, who are mostly women. In some cases, it allows them to return to the workforce.
However, the growth of the care economy does not come without its challenges. Most of these care roles are government-funded. As a result, the growth of the care economy has placed significant strain on government budgets.
In many cases, the nature of care roles means they do not generate as much productivity as some other roles. In some cases, it also takes workers out of sectors of the economy that are more productive, such as retail and hospitality.
Experts warn that other areas of the economy will have to grow faster to cover the decrease in productivity experienced as a result of the growth of the care economy.
Despite this, the care economy plays a vital role in looking after the vulnerable in the community. Therefore, for those who enjoy helping others, the care economy can provide a highly rewarding and satisfying career path.
The growth of the care economy has created endless opportunities for those who are looking to change careers.
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Article References
Blackberry, I (28 August 2024) ‘Re-imagining the Care Economy will improve lives’, La Trobe University, accessed 15 October 2024.
Grattan, M (20 August 2023) ‘Care’ economy to balloon in an Australia of 40.5 million: Intergenerational Report’, The Conversation, accessed 15 October 2024.
Read, M (10 October 2024) ‘NDIS is sucking in workers from more efficient jobs’, Financial Review, accessed 15 October 2024.
Van Onselen, L (14 October 2024) ‘Care sector leaves economy on life support’, Macro Business, accessed 15 October 2024.
Victorian Government (11 December 2023) ‘Delivering on the needs of the care economy’, Victorian Government, accessed 15 October 2024.