The Australian care industry in 2026

This report highlights the critical role of the care sector in Australia’s economy and society. The care industry, encompassing healthcare, aged care, disability support, social assistance, and early childhood education, has become Australia’s largest employing industry and continues to experience strong growth driven by population ageing, rising service demand, and government investment.

The report outlines that the sector employs a diverse workforce, including healthcare professionals, allied health workers, care workers, administrative staff, and support roles. However, ongoing workforce pressures remain a major challenge, with increasing demand for services placing strain on recruitment, retention, skills development, and service delivery capacity.

Key issues identified include the need to improve workforce participation, strengthen training pathways, support productivity improvements, and ensure funding and policy settings keep pace with changing community needs. The report emphasises that sustainable growth in the care industry will require collaboration between government, employers, workers, and education providers to address labour shortages and maintain quality outcomes.

As Australia’s population continues to age and expectations for accessible, high-quality care increase, the report argues that the care sector will become even more economically significant. Long-term sustainability will depend on developing a capable workforce, embracing innovation, and creating policy frameworks that enable providers to meet growing demand while maintaining quality and affordability.