As the demand for senior living services escalates, the sector confronts unprecedented workforce challenges that jeopardize operational viability. Nearly 99% of nursing homes and 96% of assisted living facilities in the U.S. report staffing shortages, with 59% of nursing homes and about one-third of assisted living providers experiencing high-level shortages.
The severity of this crisis is underscored by the fact that long-term care has seen a workforce decline of 7.3% since 2020, with an estimated 116,000 additional workers needed across the sector to maintain service quality and operational efficiency. Projected workforce demand through 2033 reveals a pressing need for 484,000 care aides, alongside 245,000 registered nurses and 328,000 nursing assistants. The growth trajectories for these positions indicate that care aides will experience a projected increase of 21%, while nursing assistants and licensed practical nurses may see only modest growth rates of 4% and 3%, respectively. This situation is particularly alarming given that by 2030, the U.S. will need 3.5 million more healthcare workers to meet the demands of an aging population.
The long-term care sector faces a 7.3% workforce decline since 2020, necessitating 116,000 additional workers to sustain operations.
These disparities illustrate a significant imbalance in workforce supply and demand, exacerbating the operational challenges faced by facilities. Operational impacts are substantial, with 58% of nursing homes limiting new admissions due to staffing shortages and 78% expressing concerns that these workforce challenges could force facility closures.
The financial burden is also evident, as nearly 70% of nursing homes are resorting to hiring expensive agency staff to fill gaps, resulting in increased operational costs. Overtime requirements further strain the workforce, as nearly every facility mandates staff to work additional shifts to meet resident needs. In response to these challenges, 70% of nursing homes are hiring expensive agency staff to fill gaps, leading to increased operational costs.
Geographic disparities amplify the crisis, particularly in rural areas where skilled nursing facilities face acute labor shortages. Immigrant workers play a vital role in alleviating these gaps, comprising 27.5% of direct care roles in senior living. However, ongoing immigration restrictions threaten to exacerbate these workforce challenges, jeopardizing the ability to meet rising resident expectations and operational demands in a sector under unprecedented strain.
