RISING DEMAND FOR CAREGIVERS HIGHLIGHTS LONG-TERM CARE ECONOMICS - WEF

KUALA LUMPUR, March 29 (Bernama) -- The growing demand for carers and long-term care services is underscoring the need for sustainable care funding and better economic support for caregiving, the World Economic Forum (WEF) said.  

In a white paper, 'Future-Proofing the Longevity Economy: Innovations and Key Trends', WEF said strong infrastructure is vital to sustaining caregiving economics and ensuring support for both carers and recipients.  

“Many carers juggle their responsibilities alongside work and personal commitments, leading to financial strain, physical and emotional stress, and long-term insecurity.  

“In many cases, where carers are also responsible for children, the burden can be exacerbated by the lack of sufficient and affordable childcare,” it said.  

To meet the needs of an ageing population and achieve the United Nations Sustainable Development Goals related to health and well-being, the global economy will need to create 475 million care jobs by 2030.  

WEF highlighted that it is essential to promote the well-being of carers and ensure they can continue to provide care without jeopardising their financial futures.  

“Policies and investment must focus on creating robust formal care infrastructure that complements informal care,” it said. 

Challenges 

WEF said that among the challenges, the growing financial burden of caring is straining individuals and families. In many countries, the lack of affordable options forces individuals to rely heavily on unpaid carers, who often sacrifice work hours or leave the workforce entirely.  

“Nearly 70 per cent of family carers in the US report difficulty in balancing their career and caring responsibilities, and nearly 30 per cent of working carers have shifted from full-time to part-time work or have reduced their hours,” it said.  

Meanwhile, access to affordable long-term care remains a persistent challenge, with the cost of nursing home care in the US surpassing US$100,000 per year. Similar trends are evident in other high-income countries.  

WEF said policy gaps leave many carers without adequate financial and systemic support.  

“Policy-makers must address the financial, physical, and emotional costs of providing care through comprehensive reforms that include incentives, subsidies, childcare support, and workplace protections for carers,” it said.  

Innovations in Japan and the EU    

By integrating human-centred community care with effective technological advances, Japan offers a scalable and sustainable model to address the global challenge of providing care in an ageing society.  

Its Community-Based Integrated Care System allows older adults to age in place by providing localised healthcare, nursing care, and daily living assistance within a 30-minute radius.  

WEF said technology plays a complementary role, with innovations such as AI-enabled monitoring systems to detect falls and emergencies, companion robots like “PARO” for emotional support, and digital platforms to coordinate care among carers, families, and healthcare providers.  

Meanwhile, the European Union focuses on care credits, which allow individuals to accumulate pension entitlements while providing care, ensuring that carers are not financially penalised for taking on caring responsibilities.  

Many member states allow carers to accumulate pension credits for time spent providing informal care to family members. France and Germany, for instance, offer pension credits for both child-rearing and caring for older people, helping to balance gender disparities.    

Moving Forward    

WEF said key priorities for creating an equitable and sustainable care economy include expanding financial and workplace protections for carers by implementing carer credits, paid leave policies, and flexible work arrangements to support those balancing employment and caring.  

In addition, there is a need to invest in long-term care infrastructure by strengthening formal care systems to reduce reliance on unpaid family carers and ensure access to quality services.  

WEF also highlighted the importance of reducing the gendered economic impact of caring by addressing systemic inequalities that disproportionately affect women’s workforce participation and long-term financial security.  

Furthermore, WEF emphasised promoting age-friendly policies and environments, as well as integrating technology into care provision solutions.  

“Putting digital tools, AI-driven care coordination, and community-based innovations to work enhances the accessibility and efficiency of care provision,” it added.  

-- BERNAMA