Research released October 16 by national advocacy organization PHI “presents new evidence … showing that median wages for direct care are lower than median wages for similar occupations” in competitive industries like retail, fast food and others.
The fact sheet, Competitive Disadvantage: Direct Care Wages Are Lagging Behind—2024 Update, also highlights trends in the wage gap between direct care workers and comparable occupations (e.g., housekeepers, janitors, customer service representatives, retail salespersons, and food preparation workers) from 2014 to 2023. The report found that in all 50 states and the District of Columbia, direct care workers earned a lower median wage than comparable occupations in other industries.
PHI’s research also looks at wages. As of 2023, the latest available data, the hourly wage gap varied from -$0.46 in Rhode Island to -$5.56 in Texas. In 39 states, the gap was at least -$2.00 per hour, with 19 of those states reporting a difference of over -$3.00 per hour. Over the past decade, direct care worker median wages remained lower than median wages for similar occupations despite narrowing in 32 states. Despite some advances, the wage gap has widened 17 states.
“An array of strategies is needed to improve job quality, strengthen and stabilize the direct care workforce, and ensure access to services for all those who need them,” the authors say. LeadingAge also urges a multi-faceted approach that includes numerous solutions, to address the needs of the aging services workforce.
