Australia’s shortage of aged care workers is well known. With around a quarter of the workforce nearing retirement, the issue is only expected to worsen in the coming years.

This could have serious implications for the services and level of care Australia’s ageing population receives

At the same time, demand for aged care is rising as the population continues to age and more people require support later in life. Ensuring there are enough skilled workers to meet this demand is becoming one of the biggest challenges facing the sector.

So, what challenges is the industry facing?

What are the challenges?

Ageing population

Between 2016 and 2021, Australia’s average age rose from 37.2 years to 38.4 years. By 2045, it is expected to reach 41.

As Australia’s population ages, demand for aged care services is surging.

As people live longer, more individuals require support with daily living, healthcare and specialised aged care services. This includes residential aged care as well as support that allows older Australians to remain in their own homes for longer. As a result, demand for qualified aged care workers is expected to grow significantly over the coming decades.

However, at the same time the workforce is ageing, dispersing and in some cases shrinking.

Workforce pressures

Studies show that there are more than 400,000 Australian aged care workers over the age of 55, representing around 23% of the workforce. Many of these workers are expected to exit the workforce in the next decade.

Workforce retention has become a key factor in how many aged care facilities can operate. If an aged care facility cannot find the required staff, it cannot operate no matter how strong demand may be.

With an ageing population, some areas will face greater staffing pressures than others.

Housing affordability for workers

Housing affordability is also a key issue. In some locations, aged care providers report difficulties attracting staff because workers simply cannot afford to live nearby. This can create staffing shortages even when there is strong interest in working in the sector.

In some cases, house prices may be up to 30 or 40 times the annual wage of workers.

This can lead to long commute times for many aged care workers, which affects the ability of providers to retain staff.

Training and skills shortages

Another challenge facing the sector is ensuring there are enough qualified workers entering the industry. Many aged care roles require specialised training, including qualifications in individual support, nursing or allied health. While training pathways exist, the sector must continue attracting new students and workers to meet future demand.

Providers are also competing with other industries for workers with similar skills. Hospitals, disability services and community health organisations often recruit from the same talent pool. This competition can make it harder for aged care providers to recruit and retain staff, particularly in regional areas.

With demand rising fastest in areas that are least able to absorb workforce shortages, investment, planning and workforce solutions will need to be prioritised to ensure older Australians receive the care and support they deserve in the decades ahead.

While these challenges are significant, they also highlight the growing need for skilled workers across the aged care sector. For those considering a career in aged care, the industry can offer stable employment and the opportunity to make a meaningful difference in people’s lives. However, standing out to employers is essential in a competitive job market, which is where professional application support can help.

Are you looking for a new career? Aged Care Resumes can help. We are pleased to offer various services including our resume writing service and cover letter writing service.

Article References

Egan, N (20 February 2026) ‘Providers told to prepare for critical mismatch’, Australian Aging Agenda, accessed 9 March 2026.

Hellocare (24 February 2026’) ‘Who will look after our elders as workers retire in droves?’ Hellocare, accessed 9 March 2026.