Recent data shows that average wages for employees in senior living have been rising at a faster rate than those in the private sector. Despite this growth, staffing continues to be a significant challenge for the industry as a whole.
The findings come from a comprehensive report by Argentum that delves into the wage trends from 2019 to 2023. Analysis of Bureau of Labor Statistics data reveals that hourly wages in senior living jumped by 30.9% during this period, outpacing the 24.4% increase seen in the broader private sector. The report highlights specific years where wage growth was particularly notable, with spikes of 8.9% and 6% compared to the previous years.
Some roles within the senior living sector experienced significant wage growth, with annual increases ranging from 7% to 12% over the five-year period. Lead certified nurse assistants, for example, saw a substantial 49.2% rise in wages, while medication aides also experienced a notable 34.1% increase.
Despite these wage hikes, the industry is facing challenges in filling positions to meet the growing demand from seniors. Projections indicate a significant demographic shift, with seniors projected to outnumber children by 2025 and the number of older adults doubling by 2060. This shift will require the addition of 2.4 million jobs in the senior living and care industry by 2040.
With an anticipated need to recruit over 20 million new employees in the coming years, senior living communities are already feeling the impact of fierce competition for talent with the private sector. It is critical for the industry to prepare for the surge in demand from incoming seniors, particularly as the oldest baby boomers are beginning to enter the market.
