Source: Fortune
Summary
KPMG senior economist Matthew Nestler warns that the home healthcare system is “unsustainable” and “buckling” under the pressure of an aging population. Despite adding 693,000 jobs in 2025, the sector faces challenges such as low wages, underemployment, and burnout among workers. Home healthcare workers make up less than 3% of the total jobs, but their impact on the rest of the economy is significant. Nestler notes that the sector’s resilience is largely due to baby boomers, who require more care as they age.
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The numbers tell one story. Home healthcare services added 7,000 jobs in March, but this is still below the 2024 average of 12,900 added jobs per month. Weekly hours for healthcare services employees have dropped to 28, the lowest point in nearly two decades. KPMG found that 10% to 20% of workers in every industry provide unpaid elder care, straining the labor supply. The sector’s low wages, less than $35,000 annually, have resulted in underemployment and burnout among workers.
As the population ages, the demand for home healthcare services continues to rise, but the sector’s external pressures, including low reimbursement rates and immigration woes, are taking a toll. The Trump administration’s immigration crackdown has slowed the growth of the workforce, and a post-pandemic surge of immigrants willing to work low-wage jobs has not been enough to keep up with demand.
The situation is a canary in the coal mine for the labor market, with the weight of unpaid care set to increase unless the labor supply is replenished. As Nestler notes, “These are really difficult jobs… They’re emotionally difficult; they can also be physically difficult in some ways.” The sector’s challenges reflect the society’s values, where some of the most necessary jobs are the lowest paid.
Home healthcare is a microcosm of the labor market’s broader challenges, where the most vulnerable workers are shouldering the burden of an aging population.
Author: Evan Null
