Institute for Social Vision Design

Is a 14.3% Turnover Rate 'Low'? — The Triple Burden of Wages, Working Conditions, and Social Standing in Care Work

Naoya Yokota
About 5 min read

Japan's care worker turnover rate of 14.3% (FY2021) exceeded the all-industry average. While the latest data shows improvement to 13.1%, the structural constraints of wages, harsh working conditions, and low social standing remain unresolved. This article examines how the care reimbursement system—a government-set pricing mechanism—blocks market-driven wage improvements.

XFacebookThreads

TL;DR

  1. Care worker turnover improved from 14.3% (FY2021) to 13.1% (FY2023), but the hiring rate remains nearly equal, perpetuating a 'revolving door' structure
  2. Average monthly wages for care workers are approximately ¥80,000 lower than the all-industry average, with the care reimbursement system acting as a structural ceiling on pay
  3. The triple burden of physical strain, night shifts, and emotional labor, compounded by low social standing, creates a vicious cycle undermining workforce retention

What Is Happening

Care worker turnover is improving but the revolving door structure persists, while the wage gap is actually widening

Care worker turnover in Japan is improving—at least numerically. According to the annual survey by the Care Labor Stability Center, turnover for the combined two job categories (home care workers and facility care workers) declined from 14.3% in FY2021 to 13.1% in FY2023—now below the all-industry average of 15.0%.

At first glance, this looks like good news. But the numbers require careful reading.

While turnover has improved, the hiring rate stands at 16.9%. Separations amount to roughly 80% of new hires in absolute numbers, meaning the "revolving door" structure—where experienced workers flow out and are replaced by newcomers—remains intact. There is a vast difference in care quality between a certified care worker with over a decade of experience and a first-year newcomer. Declining turnover does not necessarily translate into improved service quality.

There is another overlooked figure: the wage gap. According to MHLW surveys, the average monthly wage for care workers in 2024 was approximately ¥303,000. The all-industry average was ¥386,000—a gap of approximately ¥80,000, and one that has been widening year by year.

2019Gap: 5.10k yen
2020Gap: 5.20k yen
2021Gap: 5.60k yen
2022Gap: 6.20k yen
2023Gap: 6.90k yen
2024Gap: 8.30k yen
Care WorkersAll Industries
Monthly Wage Gap Between Care Workers and All Industries (¥10k) — MHLW Wage Census & Care Worker Treatment Survey

Declining turnover and widening wage gaps. Viewed together, these facts reveal not signs of improvement, but the depth of structural problems.

Background and Context

The care reimbursement system creates a wage ceiling, while emotional labor and physical demands drive turnover

Care Reimbursement — The Regulated Price That Caps Wages

The primary reason care worker wages remain far below the all-industry average lies in the system. The price of care services is not determined by market supply and demand but set by the government through triennial revisions. Providers must cover all costs—including labor—within these reimbursement limits.

In most industries, severe labor shortages drive wages up, attracting new workers through market mechanisms. In care work, however, the government-imposed ceiling on reimbursement fundamentally limits the space for market forces to operate.

The FY2024 care reimbursement revision consolidated the system, merging three separate add-ons into a single allowance with a maximum 2.3 percentage point increase. The previous three-tier system (Care Worker Treatment Improvement Allowance, Specified Treatment Improvement Allowance, and Base Increase Support Allowance) became a unified "Care Worker Treatment Improvement Allowance."

Yet structural limitations remain. First, obtaining the allowance requires complex application procedures and career path requirements, creating higher barriers for smaller providers. The fact that the specified treatment improvement allowance uptake rate remained in the 70% range illustrates this challenge. Second, with wage increases occurring across all industries, unless care sector increases outpace others, the gap will not close. In 2024, the all-industry wage growth rate exceeded that of care work, causing the gap to widen further.

The Dual Structure of Physical Strain and Emotional Labor

Care work places extraordinary demands on both body and mind. According to MHLW's "Current State of Care Work," 29.9% of care workers report that "physical burdens are significant (concerns about back pain and stamina)." Statistics showing that approximately 75% of occupational diseases in the health and sanitation sector are back pain-related starkly illustrate the physical toll of care work.

Beyond physical demands, care work involves a unique burden: . Workers must continuously suppress their own emotions and respond professionally, even when facing unreasonable demands or verbal abuse from care recipients and their families. This "management of emotion," conceptualized by sociologist Hochschild, accumulates invisible wear that is a primary driver of burnout.

Research by Doi at Osaka University analyzed the relationship between emotional labor and burnout among helping professionals, revealing a mechanism where accumulated negative emotions lead to depersonalization through emotional exhaustion. Crucially, emotional labor is not a matter of individual temperament—it is a problem produced by institutional structures.

Social Standing — The Invisible Wall

"Anyone can do care work"—this perception has long depressed the social standing of care professionals. Despite the specialized skills required for physical care, rehabilitation support, and dementia care, care work is often characterized as mere "physical labor" or "endurance work."

This low social standing correlates directly with wage levels. The implicit premise that "a job anyone can do" need not command high compensation casts a shadow over care reimbursement discussions. The result is wages that fail to reflect professional expertise, triggering adverse selection where the most skilled professionals are the first to leave.

Reading the Structure

Wages, working conditions, and social standing form a vicious cycle that cannot be resolved through piecemeal approaches

Turnover 14.3%(FY2021)
Structural Wage Constraints
Care reimbursement (regulated pricing) caps wages
Harsh Working Conditions
Physical strain, night shifts, emotional labor
Low Social Standing
Misperception that 'anyone can do it'
Low wages → Difficulty attracting workers
Staff shortage → Increased per-person burden
Overwork → Worsened social image
A vicious cycle of three factors structurally drives turnover
* Latest FY2023 data: improved to 13.1% (below 15.0% all-industry avg.)
The 'Triple Burden' Structure of Care Work — Interplay of Wages, Working Conditions, and Social Standing

These three problems do not exist in isolation. They are interconnected, forming a vicious cycle.

Low wages fail to attract workers. Staff shortages increase per-person workloads, intensifying physical strain and emotional labor demands. Harsh working conditions reinforce the image of care work as grueling and undesirable, further depressing social standing. Low social standing means wage improvements lack political priority, and care reimbursement remains stagnant. And wages stay low.

Breaking this vicious cycle requires more than addressing any single factor. The FY2024 consolidation of the treatment improvement allowance was a step forward on wages, but without parallel improvements in working conditions and a transformation of social perceptions, fundamental resolution remains out of reach.

Internationally, care worker turnover and staffing shortages are challenges shared across developed nations. An ERIA report (2021) notes that Japan's care policies could serve as a model for aging societies across Asia, while warning that delayed treatment improvements constitute a structural risk.

It is premature to take comfort in the "improvement" of a 13.1% turnover rate. Behind that number lie a revolving door structure, a widening wage gap, and frontline exhaustion. Unless these structural challenges are confronted, the projected shortage of approximately 570,000 care workers by 2040 will steadily become reality.


For a broader analysis of the care worker shortage structure, see "The Structure of Japan's Care Worker Crisis — The 'Invisible Roadmap' to 2040."


References

Questions to Reflect On

  1. Does the fact that care worker turnover has dropped below the all-industry average mean the problem is being resolved? How should we interpret the structure behind the numbers?
  2. Is the care reimbursement system a mechanism that guarantees service quality, or a constraint that suppresses wages? How should we think about this duality?
  3. How has the social perception that care work is 'something anyone can do' been formed, and what might change it?

Key Terms in This Article

Care Reimbursement
The government-set price paid to care service providers under Japan's Long-Term Care Insurance system. Revised every three years by MHLW, it effectively caps provider revenue and thus directly affects staff wages.
Emotional Labor
A form of labor requiring workers to manage and suppress their own emotions while displaying organizationally appropriate expressions. Coined by sociologist Arlie Hochschild, it is prominent in care work, nursing, and service industries, and is a major contributor to burnout.
Treatment Improvement Allowance
An add-on to care reimbursement designed to improve care worker wages. In FY2024, three separate allowances were consolidated into a single 'Care Worker Treatment Improvement Allowance.' Providers must file wage improvement plans and meet career path requirements to qualify.
XFacebookThreads

Related Content

Join ISVD's activities?

Sign up to receive the latest research and activity reports. Feel free to reach out about collaboration or project participation.