According to the latest employment projections, a million more direct‐care workers will be needed by 2016 to meet the demand for services from the growing number of Americans over age 65. Our long‐term system faces a huge recruitment challenge – a challenge made more difficult by the poor quality of many direct‐care jobs.

The vast majority of frontline workers earn wages below $9.85 per hour and nearly one in three lack health insurance coverage. Additionally direct‐care workers often face inadequate training, lack of stable hours, and limited opportunity for advancement.

According to the PHI Chart Book on State Wages, real wages for personal and home care aides fell by four percent from 2000 to 2006. In 29 states, average hourly wages for aides were below 200 percent of the Federal Poverty Line wage for full-time workers who live alone — low enough to qualify for many state and federal assistance programs.

This poor job quality fuels the long–term care industry’s high turnover rates (70% annually in nursing homes and estimated at 50% in home care) as direct‐care workers leave the field for better compensated, more stable work.

Charts

State Mean Wages for Personal & Home Care Aides Compared to Federal Poverty Level (FPL) Mean Wages for a One-Person Household, 2006
100% US FPL, 2006
-
$4.71  
200% US FPL, 2006
-
$9.40
Texas
  $6.51  
Nebraska
  $9.42
West Virginia
  $6.97  
Wisconsin
  $9.42
150% US FPL, 2006
-
$7.07  
New Hampshire
  $9.50
Mississippi
  $7.21  
Pennsylvania
  $9.51
Arkansas
  $7.25  
Michigan
  $9.53
Louisiana
  $7.41  
Iowa
  $9.61
Alabama
  $7.78  
Nevada
  $9.72
Oklahoma
  $7.94  
Arizona
  $9.79
Virginia
  $7.94  
New York
  $9.79
Kentucky
  $8.09  
California
  $9.88
Tennessee
  $8.30  
Maryland
  $10.01
South Carolina
  $8.36  
Washington
  $10.11
Missouri
  $8.40  
Deleware
  $10.18
Idaho
  $8.46  
Connecticut
  $10.26
Montana
  $8.49  
Washington DC
  $10.31
New Mexico
  $8.53  
Vermont
  $10.46
North Carolina
  $8.54  
Oregon
  $10.54
Kansas
  $8.59  
Rhode Island
  $10.62
Illinois
  $8.70  
Minnesota
  $10.66
South Dakota
  $8.71  
Massachusetts
  $11.02
Georgia
  $8.87  
New Jersey
  $11.14
North Dakota
  $8.90  
250% US FPL, 2006
-
$11.78
Ohio
  $8.91  
Alaska*
  $13.43
Colorado
  $8.93    
Florida
  $9.06  
Maine
  $9.07  
Hawaii*
  $9.08  
Utah
  $9.17  
Indiana
  $9.26  
Wyoming
  $9.35  

* Because of their higher living costs, Hawaii and Alaska have separately specified federal poverty guidelines that are different from those for the 48 contiguous states and the District of Columbia.

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