England’s adult social care industry contributed an estimated £77.8 billion to the economy in 2024/25, marking a new high according to Skills for Care’s latest State of the Adult Social Care Sector and Workforce report. Employment in the sector grew by 3.4% to 1.6 million filled posts, while the total number of roles increased by 2.2%, underlining its expanding role as a key public service and economic driver.

The increase is largely attributed to improved staffing levels and the uplift in the National Living Wage, which has helped raise average pay. Although vacancy rates have returned to pre-pandemic levels at 7%, recruitment and retention remain persistent challenges. Domestic employment fell by 30,000, while international recruitment dropped by over half to 50,000, sparking calls for a stronger homegrown workforce strategy.

Turnover in the independent sector eased to 24.7%, and the number of men in the workforce rose to a record 22%. However, only 38% of care workers now hold a Level 2 qualification, while many employers still lack enhanced sick pay or pension benefits—factors linked to higher staff departures.

Skills for Care and NHS leaders have stressed the need for better pay, training, and job quality to strengthen the workforce ahead of rising demand. The sector is projected to require 470,000 additional roles by 2040 to meet the needs of an ageing population.