Mr Wallace says the sector is still struggling to attract local workers despite the landmark equal pay settlement that increased workers’ wages between 15 and 50% in April 2017.
Forecasts show that between 12,000 and 20,000 more residents will need aged care by 2026, requiring an extra 1,000 caregivers each year.
However Mr Wallace says young Kiwi workers are not attracted by the higher wages and training and are not retained once recruited, with high churn and an ageing workforce two of the major drivers.
“Rest home members of the Aged Care Association are involved in ongoing initiatives with Ministry of Social Development and Work and Income that do result in Kiwis working in aged care, but the numbers are minuscule,” he writes.
Around one-third of its aged care workforce hold some form of visa – but these workers are now also being turned off by New Zealand’s harsh immigration policy.
“Anecdotally at least we are hearing that Filipinos now see the door closing on New Zealand and are instead looking to Canada and China for opportunities,” he says.
He expects an exodus of workers in 2020 as new rules restricting visa holders to a maximum three year stay kick in, forcing them to return to their home countries.
“Another big concern is that we’ll likely see a halving of overseas registered nurses entering the sector under changes to the points threshold in the Skilled Migrant category.”
“Finance Minister Grant Robertson said in the May Budget the Government’s priority was to address industry specific shortages. We are still to hear what this means, and in the meantime our workforce shortages compound.”
A worrying scenario – and one we could see unfold here too, especially with the NDIS as an alternative for workers.
