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  • The Age of Care: Redesigning People, Technology, and Finance
    - What the care economy needs to turn growing demand into sustainable services

    The moment a parent's hospital discharge date is set, a family faces a new question: who will help with life outside the hospital, and how? As population aging makes such situations more common, care extends beyond household time and expense to shape corporate workforce management, technology use, and the allocation of public funds. Connecting rising demand with reliable services requires an integrated approach to care workers' conditions, assistive technology, and the arrangements for sharing costs.

    [Key Message]
    * Growing demand for care does not automatically create reliable supply. Conditions that allow workers to stay, costs that users can afford, and revenue structures that keep providers operating must develop together.

    * Care workers' conditions help determine the sector's capacity to deliver services. Pay must be considered alongside travel time, training, safety, and career pathways if skills are to remain in the field.

    * The value of assistive technology emerges in the tasks it performs alongside people. Assessment should focus on how much it reduces staff burdens and users' difficulties, rather than simply how much equipment is installed.

    * In the care sector, the person receiving a service and the party paying for it may differ. Payment arrangements must connect the interests of users, families, public funders, and service providers.

    * Korea's care economy needs stronger coordination alongside the expansion of individual services. Closing gaps between medical care, long-term care, and daily living support requires appropriate recognition of the people and time needed to coordinate them.

    ***

    A Day After Discharge Redraws the Industry Map
    The hospital says a parent can be discharged. Whether that means they can live alone at home is a separate question. Can they get out of bed and reach the bathroom, prepare meals, and take medication on time? Even if an adult child takes a few days off, the following week's arrangements remain unresolved. There is a gap between the end of treatment and the end of the need for help.

    This is an illustrative scenario showing how care needs arise, rather than an account of one particular family. Relatives look for home visiting services, someone to help with mobility, and hazards around the house. Individual services may exist, yet the order and extent of their use may remain unclear. Making calls, coordinating schedules, and passing on information become another job for the family.

    This is why the care economy warrants an industry perspective. Alongside the number of people providing care, it needs organizations in which they can work reliably, procedures for selecting services appropriate to a person's condition, technology that helps with mobility and recordkeeping, and systems for sharing costs. Expanding just one element is unlikely to close the gaps in everyday life.

    The care economy has a broad scope. It includes childcare, support for older people, assistance with daily living for people with disabilities, paid services, and unpaid family care. The part most directly linked to population aging involves long-term help with everyday activities. Its central tasks include assistance with eating, bathing, and mobility, observing changes in health, and helping people maintain the activities they can perform independently.

    The January 2025 World Employment and Social Outlook report from the International Labour Organization (ILO) identifies the unequal distribution of unpaid care as one structural barrier to women's labor market participation. Care concerns employment within the sector and the conditions that enable people to work in other industries. When a family member reduces working hours or leaves employment because services are unavailable, the effects extend beyond the household.

    An ILO care economy brief published in July of the same year identifies the potential to create nearly 300 million jobs by 2035 through investment in universal childcare and long-term care services. This estimate assumes a particular expansion of investment. It is neither a count of jobs in older people's care alone nor a guaranteed employment forecast. Understanding care's economic significance requires attention to both its coverage and the investment assumptions.

    Market size needs a similar interpretation. More people needing help and sufficient services actually being purchased are different things. If users cannot afford care or providers cannot retain workers, demand can exist without sustained supply. Alongside demographic change, growth in the care economy depends on institutions and operating capabilities that narrow this gap.

    Why People Leave an Industry That Needs More People
    Expanding recruitment may seem the quickest solution to care workforce shortages. Recruit trainees, support qualifications, and bring more people into the field. Yet even a larger intake may not increase capacity as expected if existing workers keep leaving. The scale of recruitment must be considered alongside the conditions that support retention.

    Labor is a major cost in care, but people are also its core productive capacity. An experienced worker knows a user's usual condition, preferences, and ways of expressing discomfort. A new colleague needs time to learn the same information. Frequent turnover creates costs not only for recruitment and training but also for rebuilding relationships.

    A 2023 report on long-term care working conditions from the Organisation for Economic Co-operation and Development (OECD) examines low pay, physical and psychological demands, and burdensome working hours as obstacles to attracting workers. It also explores structural factors, including inadequate funding and workers' limited bargaining power, that help explain why wages and conditions do not improve sufficiently despite shortages.

    This analysis makes it difficult to treat care supply purely as a conventional recruitment problem. A provider may want to offer better conditions but lack the service revenue to support them. Conversely, increased funding may have limited effects on the ground if there are weak mechanisms for checking how it translates into pay, safety, and training.

    Singapore offers an approach that makes compensation in community care more visible. Salary guidelines updated by its Ministry of Health in April 2026 recommend increasing annual total compensation by about 7% or more for most roles. Recommended starting and midpoint base salaries and median annual total compensation help jobseekers and workers understand the pay structure. The guidelines are not mandatory, and implementation involves adjustments by individual organizations.

    What matters here is how the value of a role is explained, alongside the increase itself. People need to see what compensation they can expect for particular responsibilities and career development in order to decide whether to enter and stay. Presenting care as meaningful work should go hand in hand with providing reasons to choose it as a career.

    In home care, time beyond the hourly service itself also matters. A worker visiting several households in a day spends time traveling, waiting, and keeping records between direct care sessions. How that time is treated in scheduling and compensation changes the actual burden of work. The visiting times listed on a schedule alone do not capture the working day.

    Career pathways also affect supply capacity. Organizations need to consider whether experienced staff must remain in the same role or can move into training, frontline mentoring, scheduling, or case management. To secure workers, the care sector needs both an entry route and a path that allows people to stay.

    The Costs After Purchase Matter More Than a Robot's Price Tag
    Demonstrations of care technology often feature striking equipment: devices that assist transfers, sensors that detect movement, and systems that record a person's condition. But the value of technology in practice depends on the changes it produces in daily work as well as its performance in a showroom.

    Suppose a provider purchases a mobility assistance device. If staff have not learned to use it adequately, or if it is stored far away and takes too long to prepare, they may revert to familiar methods when pressed for time. Training, spatial layout, maintenance, and procedures stand between owning equipment and using it routinely.

    A policy change in Japan illustrates a broader view of technology. In June 2024, the Ministry of Health, Labour and Welfare and the Ministry of Economy, Trade and Industry revise the priority fields for using care robots and rename them the priority fields for the use of care technologies. The revised framework sets out an April 2025 start and expands to nine fields covering 16 items.

    The additions include support for functional training, meal and nutrition management, and daily living and care for people with dementia. The scope broadens from devices assisting particular physical tasks to support across everyday life. Designation as a policy priority, however, does not guarantee the effectiveness of an individual device or successful adoption at every workplace.

    The key question for providers is which burden in which task they intend to reduce. They need to specify whether information can be entered once and used across tasks, whether staff need less physical effort to support a user, or whether a system helps distinguish situations requiring night-time checks. A clear purpose makes it possible to assess changes before and after adoption.

    The work technology removes and the work it creates must be assessed together. When a sensor sends an alert, someone must check it and respond. Too many alerts can increase checking work; without a clear assignment of responsibility, important information may not lead to action. Detection capabilities and response arrangements need to be designed as a package.

    Costs do not end with purchase. Connectivity and software fees, repairs, training, replacement equipment, and integration with existing systems can follow. Equipment purchased with a subsidy can become difficult to maintain if operating funds are unavailable afterward. Financial design needs to consider initial adoption and continued use together.

    Measuring success solely by whether one employee can care for more people is also too narrow. Organizations should examine how reductions in physical strain and recordkeeping time are allocated to conversations with users, necessary observation, and staff recovery. A pathway is needed for the capacity released by technology to improve service quality.

    Small Teams Can Be More Flexible Than Large Organizations
    Scaling the care sector should be distinguished from making every workplace operate identically. Purchasing, accounting, training, and information systems can be shared, while decisions that support a user's daily life require local knowledge. Dividing responsibilities between centrally standardized functions and tasks adjusted by teams becomes an organizational design challenge.

    The Dutch community nursing organization Buurtzorg offers an example centered on small, self-managing teams. Its published operating model describes teams of around 12 people providing care locally while organizing their work, sharing responsibilities, and making decisions. Understanding users' lives and relationships and connecting with other local professionals are also important activities.

    It is difficult to reduce this example to a cost-saving formula based on fewer managers. Teams need expertise, information, time to collaborate, and support in order to make decisions. The model's description alone cannot establish that equivalent cost savings or service improvements will occur in every environment. The relevant lesson concerns how necessary authority is placed with those expected to exercise judgment.

    For example, the same 30-minute visit on a schedule may require different support depending on the user's condition. Someone may find movement harder than usual or struggle to understand an explanation. Without any scope for adjustment, staff may face a conflict between following the plan and delivering the care that is needed.

    Conversely, leaving every decision to individuals can increase variation in services and uncertainty over accountability. Local autonomy needs common safety standards, recording practices, and routes for requesting help. Distinguishing what a team can resolve from situations requiring another specialist organization makes autonomy a sustainable operating approach.

    Industrial development also creates value by making this support available without requiring each employee or small provider to build it alone. Shared training materials, backup staff, scheduling, purchasing, and payment administration can give frontline teams more scope to focus on care decisions. As an organization grows, the shared infrastructure supporting human relationships must become more sophisticated too.

    Continuity is another important capability. When a different worker visits each time, users and families must repeat the same explanations. Sharing information within teams and enabling smooth coverage during absences can reduce dependence on one particular employee. The aim is to secure continuity in relationships alongside flexibility in staffing.

    The Person Who Needs Care May Not Be the Person Paying
    One feature complicating care business models is that the user, purchaser, and payer do not necessarily coincide. An older person may receive the service, family members may participate in choosing it, and costs may be shared by the individual, the family, and public systems. Multiple interests are involved even in agreeing on what constitutes a good service.

    The level of need and the ability to pay also differ. Someone requiring substantial support may face higher costs without being able to afford them. Conversely, placing excessive pressure on provider revenue to lower prices can leave inadequate resources for staffing and quality management.

    The OECD's 2024 report on the affordability of care for older people compares how far public support reduces costs and poverty risks across countries. The central challenge is to develop services users can afford alongside financially sustainable systems. In addition to whether support exists, the burden remaining for individuals must be examined in relation to need, income, and assets.

    Payment arrangements also influence provider behavior. If revenue is primarily linked to visits or hours, managing schedules and service volumes becomes important. If time spent sharing information between organizations or coordinating with families is insufficiently recognized, providers may have weak incentives to perform work everyone needs. Requiring coordination also means recognizing its cost.

    Paying for outcomes does not automatically solve these problems. A simple comparison of results between organizations serving people with complex conditions and those serving people who need relatively little assistance can be misleading. The risks of improving only easily measured indicators or avoiding people who are difficult to serve also require examination.

    Financial models need to consider at least three things together: whether users actually receive the services they need, whether staff work under appropriate conditions, and whether providers can sustain operations while investing in safety and training. Cutting costs for only one party can transfer burdens to another.

    Family time must also enter the calculation. Public expenditure may appear low when relatives fill gaps in services by making visits, helping with transport, and coordinating schedules. Yet the price may be reduced working hours or depleted leave. A cost absent from the budget has not disappeared.

    The potential for care investment to support employment participation and more stable lives should be understood in this context. It cannot be assumed that every expenditure produces the same effect or that investment costs are automatically recovered. Funding and delivery arrangements should be adjusted while checking whose burdens were reduced, in what way, and how long services were sustained.

    Korea's Next Challenge Lies Between Services
    The organization of care coordination is also an important policy challenge in Korea. The integrated community care system presented by the Ministry of Health and Welfare is built around implementation in March 2026 and links medical care, long-term care, and daily living support. It involves assessing individual needs, developing support plans, connecting services, and reviewing them as circumstances change.

    From an industry perspective, transitions between services deserve attention alongside the number of services available. Who passes on information when someone returns home from hospital? Who checks the gap before home support begins? Which organization adjusts the plan when a person's condition changes? When connections fail, users and families can be left to perform that work.

    New areas of expertise and business opportunities can emerge here. Possible activities include understanding users' needs and coordinating multiple providers' schedules; selecting, installing, and supporting the use of suitable equipment; and providing workforce training and backup staffing infrastructure. These are potential directions for expansion, whose profitability and effectiveness must be tested against actual demand and institutional arrangements.

    Connecting information matters, but collecting every piece of data in one place cannot substitute for a clear purpose. Organizations need to decide what information is needed by whom, what the user has consented to, and how errors will be corrected. If staff must enter the same material again after a new system is introduced, technology intended to improve coordination can become additional frontline work.

    Differences in local supply conditions also matter. Operating costs can differ between areas with concentrated demand and places requiring long journeys. Designing revenue solely around the number of users may leave provision vulnerable in areas that are difficult to reach. Alongside service volumes, planners must consider the costs of travel, waiting, and maintaining emergency response capacity.

    This change also concerns businesses outside the care sector. An employee taking on family care may need a day of leave, or several months of scheduling adjustments and information. Even without providing every service directly, employers can create routes to available support and work adjustments. Workforce management that recognizes care burdens helps create conditions in which experienced employees can remain in work.

    Developing the care economy also requires making user choice meaningful in practice. More services do not necessarily create meaningful choice if people cannot understand or change what they receive. Clearly explaining available support, who will visit, and how arrangements can be adjusted when problems arise is part of service quality.

    Five Changes That Will Shape Competitiveness in Care
    The common challenge emerging from these sources and examples is to build supply structures capable of meeting growing demand. Recruiting more people and purchasing more technology are both important. The sector's foundations become stronger when these efforts connect with conditions that retain workers, arrangements for continued technology use, and principles for sharing costs.

    From this perspective, five developments warrant attention. These are interpretations of possible changes in industry structure based on the policies and examples discussed, rather than futures established by any individual report.

    First, workforce performance is increasingly likely to be assessed through retention and accumulated skills alongside recruitment. The question becomes not just how many people enter, but whether they receive training, broaden their roles, and remain in the field. Providers will need to explain compensation, schedules, and safety together, while funders will have greater reason to examine those conditions.

    Second, competition in care technology may expand from equipment supply to effective adoption in practice. Training after installation, resolving faults, and integration with existing records and work will become more important. Companies that demonstrate which tasks they improve, and by how much, may earn greater trust than those that simply add unused devices.

    Third, the capability to coordinate services may gain a clearer value. This involves passing information between hospitals and homes, and between long-term care and daily living support; changing responsible contacts; and checking gaps. Avoiding reliance on invisible family labor requires recognizing coordinators' expertise, time, and responsibilities within institutions and contracts.

    Fourth, cost assessment may broaden from the price of individual services to the user's life as a whole. Whether one visit is inexpensive and whether necessary support is delivered without interruption are different questions. Family burdens, accessibility, and staff working conditions must be considered together to understand the real costs of apparently cheap services.

    Fifth, scaling may increasingly combine local judgment with shared infrastructure. Frontline teams understand users' lives, while organizations support them through training, technology, backup staff, and management systems. Distinguishing tasks to standardize from those to tailor to individuals becomes one source of competitiveness.

    These changes involve tensions. Improving working conditions requires funding, while users' burdens need to remain affordable. Technology introduces training and management tasks, and more service coordination makes the allocation of responsibility more complex. Designing care as an industry means treating these as connected choices rather than expecting a single solution to eliminate them.

    For business leaders, the important questions extend beyond how large the market will become. Which workers can be retained, and under what conditions? Who pays, and which tasks are recognized in revenue? Who is responsible for use and maintenance after technology is introduced? Answering these questions is necessary for rising demand to translate into sustainable businesses and services.

    For employees, the care economy may first arrive as a problem of daily life rather than as a promising future industry. On the day a parent leaves hospital, a relative struggles to move independently, or they themselves need help, several systems must function together within an ordinary day. Confidence that support will be available when needed matters as much as the existence of services.

    As care expands, the standards the sector must uphold become clearer. Workers need conditions that allow them to keep working; users need support to maintain their own lives; and the society funding care needs evidence of how resources are used. Designing people, technology, and finance together is about sustaining those three commitments over time.

    Reference
    ILO, January 2025, World Employment and Social Outlook: Trends 2025
    ILO, July 2025, Advancing Decent Work and the Care Economy: An Essential Component of Social Development
    OECD, June 2023, Beyond Applause? Improving Working Conditions in Long-Term Care
    OECD, October 2024, Is Care Affordable for Older People?
    Ministry of Health, Singapore, April 2026, Updated Salary Guidelines for the Community Care Sector to Benefit More Than 23,000 Staff Across Community Care Organisations
    Ministry of Health, Labour and Welfare, Japan, June 2024, Revision of Priority Fields in the Use of Technologies for Long-Term Care
    Buurtzorg International, Our Story, History and Model of Care
    Ministry of Health and Welfare, Republic of Korea, March 2026, Roadmap for Nationwide Implementation of Integrated Community Care