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The adult social care sector in England contributed an estimated £77.8 billion to the economy in 2024/25, according to Skills for Care’s latest report. The State of the Adult Social Care Sector and Workforce in England 2025 report shows encouraging signs of growth, but also highlights continuing challenges in building a sustainable, home-grown workforce.
The number of jobs in adult social care rose by 2.2% last year, with 1.6 million posts filled across the sector. Vacancy rates have fallen back to pre-pandemic levels, and staff turnover is slowly improving. The sector’s economic contribution has also grown, boosted by more filled posts and increases in pay following the National Living Wage rise in 2024.
However, the report warns that much of this progress still depends on international recruitment. The number of overseas recruits fell by half in 2024/25, while the number of British nationals working in care declined by around 30,000. With vacancies still around three times higher than the wider economy, Skills for Care says long-term success depends on attracting and retaining more domestic workers.
For the first time, the report also looked at employment conditions. It found that more than half of employers do not offer enhanced sick pay or pension contributions, and that the share of care workers holding a Level 2 qualification has dropped to 38%, down from 41% a year ago.
Looking ahead, the sector will need to fill around 470,000 new posts by 2040 to meet growing demand from an ageing population.
Professor Oonagh Smyth, Chief Executive of Skills for Care:
It’s positive to see our workforce growing and vacancy rates continuing to fall, but we must prioritise domestic recruitment and invest in learning and development. Falling qualification levels, at a time when care roles are becoming more complex, highlight the need to build both capacity and capability.
The report draws on data from more than 700,000 staff records across 21,000 locations in the Adult Social Care Workforce Data Set (ASC-WDS).
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Kerry Booth, Chief Executive, Rural Services Network:
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