Value of Family Caregiving Reaches $1 Trillion Annually

Family caregivers now provide more than $1 trillion worth of labor each year in the United States, according to a new AARP report.

Most of this work is unpaid, yet it forms the backbone of the nation’s long-term care system that is essential to helping millions of older adults live independently at home. At $1.01 trillion annually, family caregivers represent a major economic force, yet this care often comes at significant cost to caregivers’ health, financial security, and well-being.

“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,” she added.

Key findings from the report – Valuing the Invaluable 2026 – include:

• 59 million Americans are caregivers of adults, providing care for older parents, spouses, neighbors, and other loved ones, contributing 49.5 billion hours of care annually, work that would be valued at $1.01 trillion per year if paid in the marketplace, based on a value of $20.41 per hour.

• The 49.5 billion hours of care provided each year is the equivalent of nearly 24 million full-time workers, roughly 17% of the entire U.S. full-time workforce.

• The value of family caregiving exceeds total federal, state and local Medicaid spending nationwide, and almost doubles all out-of-pocket health care spending.

• The report also includes state-by-state estimates of the number of caregivers, total hours of care provided, overall economic value, and the average hourly value of care.

• Across states, the estimated value of caregiving ranges from $14.12 per hour in Louisiana to $27.05 per hour in Washington, reflecting regional differences in wages and the cost of care.

• Caregiving has become more demanding and complex as chronic illnesses rise and more care shifts into homes:

• Family caregivers are spending more time providing care, averaging 27 hours each week.

• More than half, 57%, now provide high-intensity care meaning; they spend more hours helping with daily tasks like bathing and dressing as well as complex medical and nursing tasks like wound care and administering injections.