Enhancing Care: An Assessment of the Care Economy Landscape in New Jersey

• In Event: Data in Action: Real-World Case Studies and Partnerships Driving Policy Change

Abstract

The desire of the elderly population to age in place and the demand for affordable childcare services has led to increased focus and enthusiasm about the care economy (Munoz et al, 2024). Care work is defined as labor that promotes the health and welfare of others in society (Dwyer, 2013). While research exists for individual care occupations especially childcare sectors, there is limited information on how these sectors collectively interact and contribute to the economy. Empirical research on the care economy is still in its early stages with researchers presenting varying viewpoints on what occupations and industries constitute the care economy and how they should be examined. This research contributes to this knowledge by examining the fabric of the care economy.

Using restricted data from the New Jersey Statewide Data System supplemented with public use data, this research proposes a holistic framework for New Jersey to define its care economy and quantitatively examines the size and characteristics of the paid formal care economy, identify potential disparities in employment outcomes in New Jersey, and highlight opportunities for upskilling. Specifically, we ask three research questions: a) what industries and occupations constitute the care economy? b) what are the labor demand and supply trends in the care economy? c) what are the workforce characteristics and employment outcomes of those in the care economy? Future work on this topic will also be discussed and includes an exploration of retention, pathways, and employment trajectories after exiting this sector.

Our systematic review indicates that the paid care economy in New Jersey is made up of the seven occupations concentrated in twelve industries in New Jersey. In addition, preliminary quantitative analysis of the care industry shows that the number of individuals working in the economy increased steadily from 2015 through 2019 and then dropped sharply in 2020. Since then, there has been a slow recovery in both employment categories, more noticeable among full-time workers. There was a notable increase in median wage from $42,125 in 2015 to $50,058 in 2020, after which wages appear to have stabilized suggesting the establishment of a new wage trend. The three largest industries in the care economy in 2023 were home health care services (20%), childcare services (19%), and nursing care facilities (15%). Projections of the care occupations show that the number of home health aides is set to more than double between 2015 and 2033.

An evidence-based approach to improving the care economy would start with understanding what occupations and industries comprise the care economy and examining the workforce characteristics and employment outcomes as done in this research. Overall, this research sets the stage for policy efforts toward properly valuing the social and economic contribution of those in the care economy and addressing challenges faced by this sector and will highlight challenges and offer practical policy solutions to improving care workforce in New Jersey.

Author

• Obofoni Ann Obadan, Rutgers University - New Brunswick
  Presenting Author