Implications of labour shortages in the aged care sector

In March 2021, ACIL Allen completed a landmark study into the economic and social contribution of the Aged Care Sector in WA. The study found that the sector requires a significant and growing workforce to meet the current and expected needs of elderly Western Australians. Against this backdrop ACIL Allen was engaged by the WA Aged Care Alliance a group of seven leading aged care providers to provide an independent assessment of the implications of labour shortages on the aged care sector in WA.

ACIL Allen quantified three direct and tangible impacts of labour shortages in the aged care sector over the study period from June 2021 to December 2022: (1) the impact and cost to the WA hospital system; (2) the impact and costs of health outcomes to the individual; and (3) the impact and costs to family members of those unable to access care.

The results highlight the significant impacts that acute labour shortages in the aged care sector will have without corrective action. The sector is facing the perfect storm whereby demand continues to grow in line with the ageing population, yet its capacity to service current demand, let alone future demand, is being significantly compromised by labour shortages.