Despite a drop in the occupancy rates at providers of domiciliary care, jobs in the residential social care sector seem secure as profit margins are still up according to a report on the care sector.

Health Investor reports that although occupancy rates in the average residential home have fallen below 90% for the first time since 2002, operators have managed costs to ensure that profit margins have still increased. The latest Care Homes Review report from the property firm Colilers CRE reveals that the average profit margins increased to 30% for nursing homes and 31% for residential homes.

The report which measures occupancy rates, average weekly fees, payroll costs, non payroll costs and profit margins, is conducted each year by the firm to provide an insight into the healthcare sector for potential investors.

It revealed that for both nursing and residential home care, the proportion of revenue attributed to non-payroll costs decreased by the end of 2009, though the average weekly fees for nursing homes remained steady and residential homes saw only a marginal increase in the weekly fee rate. According to the report, the effects of the Care Quality Commission star rating system can be seen throughout the sector, with the market reflecting the "continued pressure on the public purse and greater incentives for domiciliary care."

"The large number of deals over recent years indicates that the sector continues to enjoy growth, notwithstanding the current downturn in the economy," says the report. It suggested that domiciliary care jobs may become more specialised in the future as public funding is focused at those with the greatest care requirements.