Australia’s care industry - which includes healthcare, aged care, social assistance services, and early childhood education, is the country’s largest employer and one of its fastest‑growing sectors. This report provides a broad overview of the industry’s size, structure and performance. It is designed to help businesses, policymakers and stakeholders understand how the sector is evolving, the economic and workforce pressures it faces, and the implications for investment, productivity and long‑term sustainability. 

The report finds that current growth rates for government funding are not fiscally sustainable. It supports informed decision‑making at a time when the care industry is playing an increasingly critical role in Australia’s economy.

Key findings

• Healthcare & social assistance employs over 17% of the workforce and is Australia’s fastest growing industry.
• The workforce is highly feminised and is becoming younger against the trend.
• There is a very high reliance on migrant workers in care-type occupations.
• The demand for care services is being driven by two factors: demographics and government funding support.
• As the population grows and ages, demand for care services like aged care, disability support, and early childhood education will continue to rise.
• Care productivity has declined by 5% since the pandemic, raising service delivery costs.