PHI Report: Direct Care Wages Lag Behind

Dr. Jiyeon Kim of PHI gave an update on the competitive disadvantage care workers experience in their paychecks. In her report, Dr. Kim concludes that:

• In all 50 states and DC, median wages for direct care workers were lower that median wages for similar occupations. The gap ranged from 46 cents per hour (Rhode Island) to $5.56 per hour (Texas).

• 39 states had at least a $2.00 per hour gap and in 19 states the gap exceeded $3.00 per hour. Virginia had a $3.76 gap, NC had a $1.78, and SC had a $2.17 gap.

• Direct care workers earned a median hourly wage of just $16.72 in 2023. It has barely increased over the last decade.

• Wages for care workers has a competitive disadvantage to wages offered in similarly skilled (i.e, similar or lower entry-level requirements regarding skills, knowledge, and experience) industries like retail and fast food.

• The wage gap is increasing in the Sunbelt states, the North Central, and Northeast. The wage gap is lessening in the South, Midwest, and Pacific Northwest.

Read Dr. Kim entire report and conclusions here.