Family Caregivers Account for $1 Trillion in Essential Care

AARP exclusive report: Family caregivers provided 49.5 billion hours of care in 2024, ranking among America’s largest workforces

Paul Wynn,

AARP

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Published March 26, 2026

different images of different caregivers

AARP (Getty Images,4)

Key Takeaways

A new AARP Public Policy Institute report finds that 59 million family caregivers provide care equivalent to the amount of work done by 23.8 million full-time workers.
Family care’s value exceeds $967 billion in private-sector health care costs and $932 billion in Medicaid spending.
The value of an hour of family caregiving rose from $16.59 to $20.41 in 2024, fueled by rising home care costs, higher direct care wages and minimum wage increases.

An invisible workforce across the country dedicates their time, energy and spirit to their work, usually without pay. These are family caregivers, and their contribution to the U.S. economy exceeded $1 trillion in economic value in 2024, according to a new report from the AARP Public Policy Institute.

The report, “Valuing the Invaluable 2026,” found that the 59 million family caregivers in the U.S., who are caring for adults, provided 49.5 billion hours of care, equaling work done by 23.8 million full-time workers, or about 17 percent of the nation’s full-time workers. The first report in the 20-year Valuing the Invaluable series — issued every two to four years — estimated the economic value of caregiving at $350 billion in unpaid care in 2006.

If family caregiving were counted as a formal work sector, it would rank among the largest and most valuable labor forces in the domestic economy. Yet many caregivers go unpaid and often have to leave full-time jobs to care for aging relatives or loved ones.

“That $1 trillion reflects the everyday reality of millions of families, people stepping in to care for loved ones in ways that are both deeply personal and essential to how our country functions,” says AARP CEO Dr. Myechia Minter-Jordan. “It is what allows people to remain at home, stay connected to their communities, and continue living life on their own terms. When you look at caregiving at this scale, it becomes clear that this is not just a personal responsibility; it is a foundational part of our economy and our care system, and it is time we start recognizing it that way.”

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Drawing on data from “Caregiving in the U.S. 2025,” a joint report from AARP and the National Alliance for Caregiving, Valuing the Invaluable 2026 the estimated economic value of family care surpasses the $967 billion that private businesses spent on health care in 2024 — and exceeds the $932 billion spent on Medicaid that year.

Furthermore, the average value of one caregiving hour rose from $16.59 to $20.41 in 2024, reflecting higher home care costs, direct care wages and minimum wage hikes. The report shows state-level hourly that range from $14.12 in Louisiana to $27.05 in Washington.

“With the number of caregivers rising across the country — many balancing careers and care — relying on families to juggle the responsibility alone is unsustainable,” says Rita B. Choula, senior director of caregiving at the AARP Public Policy Institute. “Family caregivers are shouldering an extraordinary load, underscoring the urgent need for policies that recognize their contributions and expand meaningful support.”

Real-world pressures

The experience of Lori Carter of Santa Rosa, California, highlights the everyday realities of the emotional, physical and financial impact on family caregivers.

After a long career in California, 57-year-old Carter moved back to her childhood home in Tucson, Arizona, to care for her 93-year-old mother, Bea. Carter had deliberately shifted into a remote corporate communications role to accommodate caregiving demands. But in January, she was laid off, which she believes was tied to her employer’s move toward AI-driven efficiencies. The loss of income has intensified an already fragile situation. While she describes herself as “getting by,” the margin for error has narrowed considerably, especially given her limited ability to reenter the workforce while providing near-constant care.

Her mother, though cognitively sharp, requires help with nearly all daily activities. Carter is effectively on duty around the clock. She also faces structural barriers to compensation: Her mother’s income slightly exceeds Medicaid eligibility thresholds, leaving Carter ineligible for paid caregiving support.

Financially, the family faces a situation familiar to many. Bea has Social Security and some retirement income, but it falls far short of covering long-term care. “My mom’s modest savings would be spent quickly, leaving us with tough choices, like selling her home,” says Carter.

Long-term care costs surged from 2019 to 2024, driven by nearly 50 percent increases in home care and assisted living, according to a recent report by the AARP Public Policy Institute. Adult day services rose 33 percent and nursing home costs 25 percent, outpacing the 22 percent income growth among adults 65 and older.

Complex and daily care demands

Since the last “Valuing the Invaluable” report, which was released in 2023, caregiving demands have intensified. Family caregivers now average 27 hours of care per week, and 57 percent are in high-intensity roles, an indication that more are taking on complex medical tasks once handled by direct care and health care professionals.

This is a reality that Lisa Tschudi knows well.

For more than two decades, Tschudi, in her late 40s, has been the full-time caregiver for her daughter Oriana, a young adult with intellectual disabilities. Oriana requires round-the-clock support and cannot be left alone. Every day at their home in southern Oregon, Tschudi and her husband, with some support from an older daughter, manage her basic needs, from feeding and mobility to communication, appointments and social activities.

Daily care routines are complex: Tschudi navigates Oriana’s unique communication style, assists with transfers and wheelchair use, monitors meals and coordinates several medications and therapies. Even seemingly simple tasks, such as going outside, attending programs or engaging in hobbies, require planning and coordination.

Despite access to state-funded direct-support hours that would enable them to hire home health aides, finding reliable paid caregivers is a challenge. Tschudi often fills the gaps, highlighting the limits of available nonfamily support. “Much of the public relies on unpaid family labor, and there really is limited access to consistent professional help,” she says.

Tschudi’s dedication extends beyond daily care. She previously hosted a podcast, Love Doesn’t Pay the Bills, to highlight the caregiving experience, and she serves on the board of a nonprofit that runs high-quality group homes. Looking ahead, she worries about Oriana’s future if she and her husband were suddenly unable to provide care, underscoring the long-term fragility of a system that relies so heavily on family caregivers.

“Caregiving isn’t just part of my life; it has shaped my adult life,” says Tschudi. “Every decision we’ve made as a family has been through that lens.”

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Paul Wynn, a veteran health care writer, has spent over a decade immersed in the caregiving community , both as a family caregiver and as a journalist covering caregiving issues for national publications.