UNTAPPED MARKET: COVID-19 MIGRANTS TO BUSH COULD PROVIDE REGIONAL AGED CARE WORKFORCE SOLUTION

• New research highlights building local workforce in regional communities crucial to meeting future aged care demands. Especially in early phase of retirement.
• Person-centred care means shaking off current ‘institutional’ models of work and expanding options to attract new workers to aged care sector.
• Small business, including sole traders account for 98% of all Australian businesses, but in 2020 represented only 27% of the healthcare and social assistance sector[1].

The aged care sector needs to look beyond external migration and tap into the innovation of small business to attract new workers, especially in regional Australia, new research shows. 

Drawing on nearly five years of data, the 2020 Aged Care Workforce Report provides one of the most detailed data sets and analysis on the sector since the 2016 Aged Care Workforce Census and Survey. 

The independent research by analysts Miles Morgan Australia shows workforce gaps in regional and rural Australia are particularly dire. 

However, small businesses and sole traders - including younger regional Australians looking for work or Covid-19 ‘migrants to the bush’[2] - could offer a valuable solution. 

The report shows between 2021 and 2025, more than half a million Australians are intending to retire, with half of the current aged care workforce in this critical age demographic.

In 5 years’ time, there will be only 1.9 workers in small rural towns for every Australian aged over 65, compared to 4.2 working Australians for every Australian over 65 in our cities.

Report author and CEO of Miles Morgan Australia, Lakshman Gunaratnam, said older Australians, especially in regional, rural, and remote communities, could stay longer at home and in their local community where care was available at the ‘early intervention’ phase of the aged care continuum. 

“We know that regional senior Australians want to stay longer at home and that they have a particular connection to their land and community,” Mr Gunaratnam said.

“We can improve the quality of life and reduce the cost of ageing to individuals, government and society when the right care is provided at the point in time - but that requires a local workforce, and micro businesses[3] are an untapped market.” 

Investing in early intervention is critical to the proper functioning of the aged care continuum. 

The aged care continuum is a concept applied by Miles Morgan Australia to shift the conversation from being overly focussed on residential care. 

“This is about socially and culturally appropriate care and companionship for older Australians to encourage and support healthy ageing, well before clinical care needs take precedence,” Mr Gunaratnam said. 

The report shows micro businesses in the aged care sector are typically younger, more diverse, happier and better paid. Consumers also report greater hours of care and more individualised service, built on person relationships and connections.

“Expecting external migration to be the sole saviour, covering growing shortfalls in the aged care workforce also won’t work,” Mr Gunaratnam said. “Building the capacity of local people in regional communities is vital or we risk a race to the bottom in terms of care quality, pay and conditions.”

“In the end, if we don’t start thinking more broadly about the aged care workforce, and acknowledge and respect macro labour market trends in micro business growth, we are risking the health and happiness of older Australians.”

Marcus Riley, Chair, Aged Services Industry Reference Committee, Australian and Industry Skills Committee, said irrespective of how the workforce is engaged, it is vital that people working in the aged care sector are responsive, and can adapt, to individual needs of people using services. 

“As one of the fastest growing workforces, one of the largest in the nation, continuous professional development and clear career pathways are essential,” Mr Riley said.

“As highlighted in the 2020 Aged Care Workforce Report, to move away from a transactional model, towards genuinely person-oriented care, a different approach to workforce skills development will need to be embraced.”

Data sets in the report were provided from labour market analysts, Qualski, and online aged and disability care marketplace platform, Mable. 

ENDS

Media Contact for Miles Morgan Australia: Bas Bolyn, 0447 486 195

Key Data Points

• As the proportion of people over 85 years old grows, service coverage through the residential aged care sector will shrink – down from the current 6% of the population over 65 years old, to the international comparison of around 4%:
• This means that high-needs, complex clients will be in the community for longer.
  
   
• Between 2021 and 2025, more than half a million Australians are intending to retire, with half of the current aged care workforce in this critical age demographic:
• That’s going to put pressure on regional Australia where over the same period, there is a shrinking labour force
• In 5 years’ time, there will be only 1.9 workers in small rural towns for every Australian aged over 65 (compared to 4.2 working Australians for every Australian over 65 in our cities)
  
   
• The report shows the typical aged care workforce profile is female (78.4%) and getting older (median age of 52). Whereas sole traders and small business have a greater proportion of men (26% male) and younger median age (42 years and getting younger from previous median age of 44).
  
   

About Miles Morgan Australia

Miles Morgan Australia, or MMA, is a privately owned and operated Australian firm with over 23 years of experience, nationally and internationally, in strategic and advisory services, data analytics and visualisation, organisational capability improvement and applied research and evaluation.

With an integrated network of senior personnel across Australia we have a strong track record of working with private business, not-for-profit service providers, social enterprises, peak bodies, Federal, State and international governments – across social and economic portfolios.

Miles Morgan Australia’s CEO (Lakshman Gunaratnam)

Lakshman is a highly experienced,  organisation process improvement specialist.

As a former Big 4 Partner, he has over 23 years’ experience and is accustomed to working directly with senior government and business leaders. 

Lakshman has a proven track record working with clients to deliver genuine social reform – translating macro-policy objectives into practical, manageable initiatives.

[1] ASBFEO Small Business Counts Dec 2020 healthcare social assistance sector small businesses was 27% a decline from 28% of the sector in 2019 2019 Small Business Counts (asbfeo.gov.au)

[2] ABS and Australian Local Government Association data shows the highest number of internal migration to regional areas from the capital cities in 2020 in nearly two decades. 

[3] Micro businesses have 1 – 4 employees