Unpaid caregiving now tops $1T annually, spotlighting strain on families

The growing economic weight of unpaid caregiving has been highlighted in new report estimating that family members now contribute more than $1 trillion annually in the US.

The study was released Thursday by AARP and calculates that roughly 59 million Americans caring for adults collectively provide 49.5 billion hours of care each year; work valued at $1.01 trillion if compensated at market rates.

That level of contribution places family caregivers among the largest ‘workforces’ in the country, equivalent to nearly 24 million full-time workers, or about 17% of the US full-time labor force, according to the report.

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The findings highlight the increasingly central role unpaid caregivers play in supporting the nation’s long-term care system, particularly as more care shifts into home settings. Without that support, millions of older adults would likely face institutional care, driving significantly higher costs across the healthcare system.

“Family caregivers are holding up a system that millions of Americans rely on every day,” said Dr. Myechia Minter-Jordan, CEO of AARP. “With the economic value of family caregiving now exceeding $1 trillion annually, it is clear that employers, health care providers, and policymakers must do more to recognize and support them, as they continue to fill critical gaps in our health care system. AARP is working to elevate the realities family caregivers face every day and advocate for solutions that reflect the true scale of their contribution.”

Beyond its scale, the report points to the uneven financial and personal toll borne by caregivers. While their contributions now exceed total Medicaid spending and nearly double out-of-pocket healthcare expenditures, most of the work remains unpaid.

The analysis also shows wide variation across states, with the estimated hourly value of care ranging from $14.12 to $27.05 depending on local wage levels and care costs.

The latest figures mark a sharp increase from prior estimates, reflecting both a rise in the number of caregivers and the growing complexity of care needs tied to chronic conditions and aging populations.

The data reinforces a mounting financial planning challenge: caregiving is not only a social issue but an economic force with implications for retirement readiness, workforce participation and household balance sheets. AARP also recently highlighted that long-term care is becoming increasingly unaffordable for middle-income older Americans, with rising costs and limited financing options leaving many retirees exposed to significant financial strain.