The social sector in NSW: Capitalising on the potential for growth
Summary
Equity Economics worked with the NSW Council of Social Services (NCOSS) and a number of critical social service providers to deliver a landmark report on the social sector in NSW, its contribution, challenges and needs.
The report finds:
The NSW Social Sector provides essential care and support to over 1 million people each year – including those impacted by poverty, homelessness, domestic violence, mental health challenges, disability or other complex issues.
In the five years before the COVID-19 pandemic, 1 in 8 jobs created in NSW was in the Social Sector.
The NSW Social Sector employs over 230,000 people, with annual economic output worth $15.4 billion.
4 out of 5 workers in the Social Sector in NSW are women.
The Social Sector will demand an additional 62,000 jobs by 2030, including 27,000 in regional NSW.
1 billion net investment in care industries by governments could lift economic activity in NSW by $10 billion per year through direct generation of jobs and freeing up informal carers to participate in the labour market.
Despite the significant economic contribution, the important work delivered by the sector and the growing need, major challenges are confronting the social sector workforce. Workforce shortages are emerging, with vacancies in key occupations including care and welfare workers increasing by over 2.6 times in regional NSW over the past five years. Many workers face job instability and low pay: half of the state’s Social Sector workers are employed in fixed-term or casual positions. Significant rising demand and unmet need is driving chronic stress and mental health concerns for Social Sector workers and undermining service quality.
Reccomendations
The report recommends:
The NSW Government review its planning and funding mechanisms to reflect population demand, identify the mix and level of services that are needed at a local, regional and statewide level, and ensure a systematic and evidence-based approach to investment.
The NSW Government provide greater industry stewardship through supporting the development of a NSW Social Sector Growth Strategy, which addresses:
Strategies to make the Social Sector an attractive career
Retaining existing staff and volunteers
Quality and productivity within the Social Sector
Planning to ensure an appropriately skilled workforce of the future
Immediate investment in supporting and addressing the mental health needs of the NSW Social Sector workforce.
Read the full report
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