In this article, we will look at the 22 highest paying countries for caregives. We will also cover interesting insights related to the global health caregiving market. If you want to skip our detailed analysis, head straight to the 5 Highest Paying Countries for Caregivers.
One of the most underpaid jobs in the world is that of caregivers. Even though the demand for professional caregivers is increasing as the population is aging, the supply of certified home caregivers has not kept pace with this demand. As a result, there’s a shortage of qualified caregivers, and this shortage often drives down wages. Moreover, private agencies that provide caregiving services, which many caregivers work for, are often for-profit businesses. These agencies may prioritize profit margins over fair wages for their employees. While the home care industry can be lucrative, a fair portion of the revenue is allocated to administrative costs like rent, insurance, and overhead. This leaves limited resources for paying caregivers a decent wage or providing benefits like paid time off.
In 2014, the average turnover rate for caregivers was high at 60% in the US, in part, due to the low salaries and made it extremely challenging for workers to sustain themselves or their families on an average annual salary of only $21,000, which is way below the national average. Even in 2023, the average salary of a caregiver in the US is $39,035, which is, again, far below the average.
The global Health Caregiving market was valued at $111.2 billion in 2020 and exhibited incredible resilience during the COVID-19 crisis. Projections indicate that by 2026, this market is expected to increase to a value of $213.9 billion with a CAGR of 11.2%.
In terms of regional dynamics, the US market is estimated at $33.6 billion in 2021, while the market in China is forecasted to reach $44.5 billion by 2026 with a CAGR of 14.7%. Other noteworthy markets such as Japan and Canada are expected to grow at rates of 7.8% and 9.7%, respectively.
The Ensign Group Inc (NASDAQ:ENSG) is a key player in the caregiving service industry who has made important contributions through its expansion and dedication to delivering quality care. With a portfolio of 288 healthcare operations across 13 states and a strong presence in California, the company has become one of the largest nursing home operators in the United States. Their recent acquisition of 17 skilled nursing communities in California from Sabra Health Care REIT which brough the the total to a 20, is the evidence of Ensign Group Inc (NASDAQ:ENSG)’s growth trajectory.
Moreover, Ensign Group Inc (NASDAQ:ENSG)’s business model focuses on localized leadership that allows them to tailor their services to the unique needs of each market. They believe in individual wellness and continued independence as they offer both independent living and assisted living services. Despite challenges like staffing agency shortages, Ensign Grouo Inc (NASDAQ:ENSG)’s leadership remains confident in their ability to implement proven cultural and operational principles which will add to the success of their market clusters.
Speaking of success, in the second quarter of 2023, the Ensign Group, Inc (Nasdaq:ENSG) reported the financial performance beyond expectations. They reported adjusted operating earnings per share (EPS) of $1.16 with a 14.9% YoY increase. Operating revenues reached $921.4 million, up 25.8% YoY. Total skilled services revenue for the company also witnessed growth as it increased by by 25.9% over the prior year quarter, while total skilled services segment income rose by 14.4%.
On the other hand, Brookdale Senior Living, Inc (NYSE:BKD), another key player in the senior care giving industry, has been largely successful in its contributions in recent years. Firstly, Brookdale Senior Living, Inc (NYSE:BKD) reported positive sales trends, with more move-ins than move-outs and improved conversion rates across its 679 communities in 41 states. This shift towards a “sales transformation” has confirmed their effectiveness of their marketing strategies.
Moreover, Brookdale Senior Living, Inc (NYSE:BKD) successfully implemented rate increases for residents that has resulted in a traditional response and an expected mid-single-digit increase in revenue per occupied room (RevPOR) in 2022. Despite the labor market’s challenges, Brookdale Senior Living, Inc (NYSE:BDK) has made progress in reducing its reliance on costly contract labor and has seen three consecutive months of hiring more employees than losing them. Furthermore, the company’s lease restructuring with its major landlords until 2025 has provided them with stability and financial predictability.
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Our Methodology
To list the highest paying countries for caregivers, we identified the countries with the highest demand for caregivers and then made a list for 28 countries with the average salaries for caregivers. Of those 28, the 22 with the highest average salaries were selected and have been ranked. We acquired the data for average salaries of caregivers for each country from ERI Economic Research Institute. The list is presented in ascending order of average salaries.
Here is a list of highest-paying countries for caregivers.
22. Japan
Average Salary: $21,865
Owing to an aging population and declining birth rates in Japan, there’s been a shortage of working-age individuals to provide care for the elderly and fill other labor-intensive roles. Hence, young Indonesians are receiving training to address labor shortages in Japan. Vocational institutions in Indonesia are offering Japanese language and caregiving training to students who are looking for employment in Japan’s care sector. Currently, there are over 16,000 Indonesians employed under Japan’s special skilled worker scheme, making Indonesia the second-highest source of such workers after Vietnam.
21. Italy
Average Salary: $25,000
Italy is facing a shortage of caregivers owing to low birth rates and young adults leaving for economic opportunities abroad. With a huge elderly population, the burden on caregivers, primarily women, is overwhelming. There are robots like Nao that do offer a potential solution as they provide mental stimulation and assistance to caregivers. While they won’t replace human contact entirely, these robots can help alleviate some of the caregiving responsibilities and improve the quality of life for older individuals.
20. Spain
Average Salary: $26,055
Spain is often considered an excellent country for caregivers owing to its strong social support systems and affordable healthcare. Spain is one of the high paying countries for caregivers.
19. Singapore
Average Salary: $27,028
A new campaign by The Secret Little Agency (TSLA) for Singapore’s Agency for Integrated Care (AIC) aims to redefine caregiving by encouraging more people to recognize themselves as caregivers and seek help through a series of natural and authentic films and interviews. The campaign seeks to address the underrecognition of caregiving roles in society.
18. France
Average Salary: $27,215
France offers a promising career in caregiving with a strong healthcare system, a growing aging population, and demand for skilled caregivers. Opportunities exist in different settings, from home care to healthcare facilities. France is one of the highest paying countries for caregivers.
17. United Arab Emirates
Average Salary: $27,738
To regard the role of caregivers, Dubai’s Community Development Authority (CDA) has introduced the “Respite Care” program that offers short breaks to caregivers of the elderly. However, eligible caregivers must be Dubai citizens and first-degree relatives living in the same home. UAE is the highest paying country for caregivers in the Middle East.
16. Sweden
Average Salary: $29,374
Sweden has a high-quality healthcare system with excellent social welfare benefits, and strong emphasis on work-life balance, which can attract caregivers from around that world. Besides, Sweden is one of the top paying countries for caregivers.
15. New Zealand
Average Salary: $29,491
Owing to the shortages of caregivers, Southland caregivers in New Zealand are struggling with overwhelming workloads and staff shortages. They often face ratios of two staff members to 27 residents which causes emotional distress and guilt for taking even sick leaves. The lack of guidelines and government-mandated staff-to-resident ratios since 2004 has put immense pressure on the healthcare system. Nonetheless, New Zealand is still one of the highest paying countries for caregivers.
14. United Kingdom
Average Salary: $29,597
The UK offers good salaries to caregivers as there is a high demand for healthcare services in the country and an aging population with a commitment to providing quality care. This drives up wages to attract and retain skilled caregivers in a competitive labor market. UK is one of the highest paying countries for pharmacists.
13. Canada
Average Salary: $32,360
Canada has a number of caregiver immigration programs, such as the Home Child Care Provider Pilot and Home Support Worker Pilot. These programs offer pathways to permanent residence for caregivers which fulfills the high demand for their services. Canada is one of the countries with the highest salaries for caregivers.
12. Norway
Average Salary: $32,818
Apart from its high wages, Norway has an excellent healthcare system, strong workers’ rights, and overall high quality of life. It offers a welcoming environment for skilled professionals. Norway is one of the top paying countries for caregivers.
11. Netherlands
Average Salary: $33,804
The Netherlands offers high salaries to caregivers as part of a comprehensive healthcare system which is aimed at attracting and retaining skilled professionals. This also explains why the Netherlands is also one of the highest paying countries for nurses.
10. Ireland
Average Salary: $34,294
Ireland is considered one of the best countries for caregivers because of its highly advanced healthcare system, strong worker protections, and a supportive legal framework. Hence, caregivers can benefit from fair wages and accessible training programs.
9. Finland
Average Salary: $35,258
Finland is an ideal choice for caregivers as it promises high-quality healthcare services, extensive social support programs, and a great work-life balance. Finland is one of the highest paying countries for caregivers.
8. Austria
Average Salary: $36,141
To become a caregiver in Austria, one can apply for a Red-White-Red Card for Skilled Workers in Shortage Occupations if one has completed professional training as a registered nurse or nursing assistant. While a job offer from Austria and meeting minimum point requirements are important, it is also noteworthy that the training done abroad must be must be validated. German language proficiency is equally important for registration in the health professional register. Austria is one of the highest paying countries for caregivers in Europe.
7. Australia
Average Salary: $36,280
Australia has around 2.7 million caregivers for whom the country offers free support services, financial assistance, and coaching through initiatives like the Carer Gateway. Australia is one of the countries that need nurses the most.
6. Germany
Average Salary: $36,541
Germany is turning to robots for elder care due to a shortage of healthcare workers and an aging population. Their “Garmi” robot, developed through geriatronics, can perform diagnostics, provide care, and assist with tasks like serving meals and making video calls. Researchers aim to alleviate the caregiver shortage by integrating technology like Garmi into society by 2030. One challenge remains gaining patient trust in using such robots as a part of healthcare services. Germany is considered the best country to work as a caregiver.
Click here to see the 5 Highest Paying Countries for Caregivers.
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Disclosure: None. 22 Highest Paying Countries for Caregivers is originally published on Insider Monkey.