A PHI analysis of nearly seven years of employment data finds that inflation has eroded wage gains for Washington State’s 60,000 individual providers, weakening the financial case for choosing caregiving over other low-wage work. While the workforce continues to grow, most newly hired unrelated providers now leave within their first year—underscoring the need for sustained, evidence-informed investment in compensation.
Key Takeaways
Inflation has outpaced negotiated wage increases, cutting individual providers' real purchasing power by 11 percent since 2020 and narrowing the wage premium over Washington's minimum wage.
While the IP workforce grew 41 percent over the study period, that growth was driven largely by family caregivers, masking persistent instability among unrelated providers.
Most newly hired unrelated IPs now leave within their first year, signaling that current wages are sufficient to attract workers but not to retain them.
Stephen McCall is the Director of Research & Evaluation at PHI, where he leads the organization's applied research to improve the quality of direct care jobs and long-term services for older adults and people with disabilities.
