Home health care services is a small, yet rapidly growing industry group within the heath care sector. However these positions – home health aides, personal aides and nursing assistants – typically experience a high turnover rate, independent of wages, as employees gain experience and move up to more advanced careers.
Wages in this industry group – considered low compared to jobs in other healthcare subsectors – are largely determined by externally set Medicaid and Medicare reimbursement rates, making it difficult for home health care employers to remain competitive in the face of declining unemployment rates.
The average pay for home health care service positions is $18,500 a year, 68 percent less than the average hospital employee. This industry group also experiences a higher turnover rate than any other health care industry sub-sector. A strong wage-turnover relationship can be implied in this case, but factors outside of natural forces of supply and demand drive this relationship.