NEUJOBS WP 12 Health care, goods and sevices for an ageing population Societal Change, Care Need and Long-term Care Workforce in Selected European Countries Johannes Geyer 2nd NEUJOBS Validation Event: Employment 2025 - How Will Multiple Transitions Affect the European Labor Market? 1 Long-term care workforce • Long-term care is provided by informal and formal caretaker • Depending on the institutional settings, the long-term care system relies more or less on formal care • In most countries, informal care (family) is the main source for people in need of care • Demographic ageing increases the share of people in need for care and – at the same time – decreases the informal care potential • The impact on the formal workforce depends on country specific settings and assumptions on the future development 2 2nd NEUJOBS Validation Event Johannes Geyer 1 Research agenda What is the impact of societal change on the demand for and supply of formal care? Detailed analysis for five countries Germany Denmark Italy Poland Slovakia 3 2nd NEUJOBS Validation Event Johannes Geyer 1 4 Tasks A Employment situation in institutional long-term care and professional home care services B Impact of demographic change C Impact of changing household structures, family structures and living arrangements on the demand for formal care D Impact on employment 2nd NEUJOBS Validation Event Johannes Geyer Outline 1 2 3 4 5 Need of care and care giving arrangements Long-term care workforce – current situation Future development of factors influencing the long-term care workforce and demand for care; and changes in labour supply Discussion 2nd NEUJOBS Validation Event Johannes Geyer 1 Dependency rates (in %) by age groups in selected countries (2010) 70.0 60.0 Denmark Germany Italy Poland Slovakia 50.0 40.0 30.0 20.0 10.0 0.0 15-24 6 25-34 2nd NEUJOBS Validation Event Johannes Geyer 35-44 45-54 55-64 65-74 75-84 85+ 1 Age-structure of the dependend population in selected countries (2010) 100% 11 90% 14 80% 31 30 29 20 21 31 34 30 19 17 17 Poland Slovakia All 34 48 70% 60% 35 19 19 50% 18 40% 33 30% 21 41 20% 10% 17 12 Germany Italy 0% Denmark 0-44 7 45-64 2nd NEUJOBS Validation Event Johannes Geyer 65-74 75+ Denmark: 0.37 Mio. Germany: 7.9 Mio. Italy: 3.1 Mio. Poland: 2.5 Mio. Slovakia 0.48 Mio. Total: 14.3 Mio. 1 Formal and informal care arrangements Total (in 1000) 2010 Denmark 371 Germany 7847 Italy 3143 Poland 2490 Slovakia 475 Total 14326 Total 2010 46,5 31,0 31,3 3,6 24,6 26,5 Formal care recipients at home in institutions 2010 2010 34,6 11,9 21,4 9,6 19,0 12,3 0,1 *** 3,5 17,6 7,0 17,4 9,1 *) 2003; **) 2010;***)2006. Source: Eurostat, EU SILC; OECD Health Data; calculation of DIW Berlin. 8 2nd NEUJOBS Validation Event Johannes Geyer Total 53,5 69,0 68,7 96,4 75,4 73,5 Informal or no care Informal Care No Care 2010 2010 5,0 48,5 41,5 27,5 128,4 * 0,0 48,8 47,6 12,0 ** 63,4 59,9 26,7 1 Informal caregiver Denmark Germany Italy Poland Males Females Total Males Females Total Males Females Total Males Females Total Share of people aged 50+ providing regular personal care to someone inside the household 3,79 5,52 4,60 5,14 7,58 6,31 7,23 10,44 8,88 personal care to someone outside the household 0,66 1,35 1,03 1,36 3,85 2,72 2,89 6,07 4,64 almost daily Source: SHARE wave 1 and 2 (Poland wave 2 only); pooled data, weighted; calculation of DIW Berlin. 9 2nd NEUJOBS Validation Event Johannes Geyer 8,59 10,58 9,66 1,26 2,49 3,42 2 Long-term care workforce – current situation 10 2nd NEUJOBS Validation Event Johannes Geyer 2 Employment in residential care and social work activities I Country Human health and social work activities Total economy Human health Residential care Social work without accommodation Total Total nuring homes Total for elderly and disabled Employment in 1000 persons EU27 13243 4521 1381 4876 1465 22640 217182 Denmark 188 122 200 509 2703 Germany 2855 1110 491 891 311 4855 39737 Italy 1268 223 86 203 74 1694 22967 Poland 705 96 20 123 43 924 16131 Slovakia 108 27 6 25 20 160 2351 Share of sectoral employment in total economy in % EU27 6,1 2,1 0,6 2,2 0,7 10,4 100 Denmark 7,0 4,5 7,4 18,8 100 Germany 7,2 2,8 1,2 2,2 0,8 12,2 100 Italy 5,5 1,0 0,4 0,9 0,3 7,4 100 Poland 4,4 0,6 0,1 0,8 0,3 5,7 100 Slovakia 4,6 1,1 0,3 1,1 0,9 6,8 100 Source: Eurostat; LFS; calculation of DIW Berlin. 11 2nd NEUJOBS Validation Event Johannes Geyer 2 Employment in residential care and social work activities II • In 2011 about 80% of all employees in residential care and social work were females (EU average) • In the selected countries, their share ranges from 70% in Germany to more than 90% in Slovakia • The share of older workers (55+) is about 16% (EU average). In the selected countries: • Nursing homes: 9% (PL) 27% (SVK) • Social work: 12% (IT) 18% (PL) 12 2nd NEUJOBS Validation Event Johannes Geyer 3 Future development of factors influencing the long-term care workforce 13 2nd NEUJOBS Validation Event Johannes Geyer 3 Demographic development • Rising life-expectancy • Constant dependency rates: an increase in life-expectancy leads to a higher share of people with impairments in ADL • Fertility rates • Have an influence in the long-run on the informal care potential; but less relevant for the projection until 2025 • Changing living arrangements • Constant age/gender-specific probability of being a caregiver, taking into account changing living arrangements • Increase in single households (exception SVK with a decline in single households) 14 2nd NEUJOBS Validation Event Johannes Geyer 3 Demographic devolpment 2010 – 2025 (by demographic scenario) 2010 2025 Changes 2025/2010 Changes 2025/2010 Friendly Tough Friendly Tough Friendly Tough in 1000 in 1000 in 1000 in % Oldest old (80 years old and older) Denmark 228 312 261 85 34 37,2 14,9 Germany 4.181 6.197 5.169 2.016 988 48,2 23,6 Italy 3.478 5.091 4.356 1.613 878 46,4 25,3 Poland 1.257 1.627 1.333 370 75 29,4 6,0 Slovakia 147 207 171 60 24 40,6 16,0 Total 9.291 13.435 11.290 4.144 1.999 44,6 21,5 EU27 23.284 32.587 27.489 9.303 4.205 40,0 18,1 Source: Huisman et al. (2013); calculation by DIW Berlin. 15 2nd NEUJOBS Validation Event Johannes Geyer 3 People (65+) with impairments in ADL in selected countries 2010 2025 2010 Changes 2025/2010 Changes 2025/2010 Friendly Tough Friendly Tough in 1000 in 1000 in % 65+ Denmark 90 110 118 20 28 22,6 31,8 Germany 3909 4316 4844 407 935 10,4 23,9 Italy 2085 2516 2787 431 702 20,7 33,7 Poland 1254 1679 1853 425 598 33,9 47,7 Slovakia 235 322 353 87 119 37,3 50,6 Total 7572 8943 9955 1370 2383 18,1 31,5 Source: Huisman et al. (2013); EU SILC; calculation of DIW Berlin. 16 2025 Friendly Tough in 1000 2nd NEUJOBS Validation Event Johannes Geyer 3 Changes in the number of informal caregiver (50+) 2010 Denmark Germany Italy Poland 90 2 476 2 704 1 385 Denmark Germany Italy Poland 21 864 1 090 325 Denmark Germany Italy Poland 70 1 612 1 615 1 061 Changes between 2010 and 2025 2025 friendly tough friendly tough friendly tough in % in 1000 persons Informal caregiver total 17,52 12,27 16 11 106 101 16,11 10,21 399 253 2 875 2 729 25,81 20,59 698 557 3 402 3 261 10,83 4,55 150 63 1 535 1 448 Informal caregiver outside the household 11,48 7,60 2 2 23 22 13,42 9,64 116 83 980 948 26,26 22,35 286 244 1 376 1 333 7,68 4,49 25 15 349 339 Informal caregiver inside the household 19,30 13,65 13 9 83 79 17,55 10,52 283 170 1 894 1 781 25,50 19,39 412 313 2 027 1 928 11,80 4,56 125 48 1 186 1 109 Source: SHARE wave 1, 2, and 4; weighted and pooled data; Huisman et al. 2013; calculation of DIW Berlin. 17 2nd NEUJOBS Validation Event Johannes Geyer 3 Changes in number of recipients of formal care 2010 - 2025 Changes between 2010 and 2025 2010 friendly tough friendly tough tough friendly in % absolute Recipients of institutional care 35,0 15,0 15 6 57 48 42 39,4 17,8 293 132 875 1 036 743 44,9 26,3 159 93 513 447 354 26,6 15,2 37 21 177 161 140 26,1 17,7 10 7 46 43 37 Recipients of formal home care 32,0 17,5 57 31 234 208 177 36,3 16,5 209 95 785 671 576 26,0 15,9 155 95 752 692 597 37,5 20,1 56 30 205 179 149 46,2 34,6 12 9 38 35 26 Recipients of cash benefits for informal care at home 24,7 9,9 292 117 1 182 1 299 1 474 498 26,3 17,5 15 10 72 67 57 2025 Countries Denmark Germany Italy* Poland Slovakia Denmark Germany Italy* Poland Slovakia Germany Italy* Slovakia *) In Italy most severe disabled persons receive a special transfer (universal cash benefit) to cope with the care expenditure which is often used to engage privat financed caretakers. Source: Schulz (2013); Coda Moscarola (2013); Golinowska et al. (2013); Radvansky and Lichner (2013); calculation of DIW Berlin. 18 2nd NEUJOBS Validation Event Johannes Geyer 3 Countries Changes in demand for formal long-term care workforce (national statistics) 2010 2025 Friendly Tough Denmark 140 163 Germany 952 1117 Italy* 334 387 Poland 72 84 Slovakia 25 31 *) Only staff in residential care 185 1318 420 93 33 Friendly in 1000 24 165 53 11 6 Changes 2025/2010 Tough Friendly Tough in % 46 366 86 20 8 17,06 17,33 15,87 15,77 21,83 32,62 38,45 25,75 28,08 30,56 Source: Schulz (2013); Coda Moscarola (2013); Golinowska et al. (2013); Radvansky and Lichner (2013); calculation of DIW Berlin. 19 2nd NEUJOBS Validation Event Johannes Geyer 3 Changes in employment between 2010 and 2025 (NEMESIS) Employment by sectors - results of the NEMESIS model Employment (in 1000) Residential Health care Human care and Non market and social health social work Country total services work (Q)* (Q86)* (Q87+88)* Changes between 2010 and 2025 tough scenario Denmark -1 64 33 11 22 Germany -3 459 -246 -355 -309 -47 Italy -323 -999 -292 -214 -79 Poland -531 358 91 69 21 Slovakia 83 4 1 1 0 total -4 231 -818 -523 -441 -82 Changes between 2010 and 2025 friendly scenario Denmark 107 126 64 22 42 Germany 161 2020 491 132 359 Italy 2 149 - 18 -5 -4 -1 Poland 810 1 016 258 197 61 Slovakia 251 96 25 19 5 total 3 478 3 239 832 366 466 *) Estimation of DIW Berlin with the exception of Germany. Source: Boitier, B., Lancesseur, N. and Zagamé, P. "Global scenarios for European socio-ecological transition", NEUJOBS Deliverable D9.2, 2013, for scenarios results; calculations of DIW Berlin. 20 2nd NEUJOBS Validation Event Johannes Geyer 3 Changes in demand for long-term care workforce and supply of residential care and social work 2010 - 2025 Tough scenario Friendly scenario demand* supply** demand* supply** Denmark 17,1% 6,6% 32,6% 12,9% Germany 17,3% -2,7% 38,5% 20,9% Italy*** 18,7% -17,7% 31,2% -0,3% Poland 15,8% 9,9% 28,1% 28,1% Slovakia 21,8% 0,9% 30,6% 18,8% *) Demand for formal long-term care workforce based on national statistics. -**) Results of the NEMESIS model for the sector non-market services; Germany for residential care and social work.-***) Change in dependent people as a proxy for formal labour demand. Sources: Boitier et al., 2013; Schulz, 2013; Coda Moscarola, 2013; Golinowska et al., 2013; Radvansky and Lichner, 2013; calculation of DIW Berlin. 21 2nd NEUJOBS Validation Event Johannes Geyer 4 Discussion 22 2nd NEUJOBS Validation Event Johannes Geyer 4 Summary & Discussion I • Projection of demand and supply of long term care workforce • Assumptions: • constant utilization rates • No behavioral adjustments • No changes in the long-term care system • Informal care remains the main pillar of the long-term care system in all countries with the exception of Denmark • We expect an increase of dependent people until 2025; the number of potential carer increases as well. • The supply of formal care has to increase by 17% (tough) or 35% (friendly) • In general: the demand for long-term care grows stronger than labor supply in this sector 23 2nd NEUJOBS Validation Event Johannes Geyer 4 Summary & Discussion II Possible strategies to increase the supply of long-term care in the future: a) Measures to increase informal care b) Measures to increase the formal care workforce c) Recruitment of long-term care workers from abroad 24 2nd NEUJOBS Validation Event Johannes Geyer 4 Summary & Discussion III a) Measures to increase informal care • Improve reconciliation of employment and informal care provision • Training, counselling • Increase the share (and amount of care provided) of male caregiver b) Measures to increase the formal care workforce • Making jobs more attractive: wages, flexible working hours, reduction of part-time jobs, career opportunities • Increase productivity by using more ICT c) Recruitment of long-term care workers from abroad 25 2nd NEUJOBS Validation Event Johannes Geyer Vielen Dank für Ihre Aufmerksamkeit. DIW Berlin — Deutsches Institut für Wirtschaftsforschung e.V. Mohrenstraße 58, 10117 Berlin www.diw.de Dr. Anika Rasner Phone: +49 30 89 789 235 Email: arasner@diw.de