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Economic Value of Family Caregiving Reaches $1 Trillion Dollars Annually, New AARP Report Shows
The report finds that 59 million family caregivers of adults contribute 49.5 billion hours of care annually, work that would be valued at $1.01 trillion per year if paid in the marketplace, with state-by-state estimates reflecting differences in wages and cost of care.
WASHINGTON — 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.
Why this matters: Without family caregivers, millions more Americans would rely on expensive institutional care, driving significantly higher costs for taxpayers and public programs.
“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.”
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.
o 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.
o 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.
Read the full report here.
Thanks to AARP's advocacy, Oklahoma became the first state in 2023 to pass a comprehensive state-wide caregiver tax credit to put money back in the pockets of family caregivers. Nebraska became the second state in 2024, and 12 states have considered state-wide caregiver tax credits legislation in the 2026 legislative session. AARP continues federal and state advocacy to save caregivers money, time, and get them the support they deserve, including by working to advance the Credit for Caring Act, legislation that would provide financial relief to eligible working family caregivers through a $5,000 nonrefundable federal tax credit to help offset caregiving expenses, and the Lowering Costs for Caregivers Act, a bill to allow family caregivers to use their health savings account or flexible spending account for qualified medical expenses of a parent or parent-in-law.
AARP also helps families navigate caregiving challenges by connecting them to trusted resources in every state. AARP’s state-by-state Family Caregiver Resource Guides help family caregivers access key programs, services and agencies right in their community. Additionally, through its partnership with United Way Worldwide, caregivers can access local support services in 28 states by calling 211, including help finding in-home care, respite care, transportation, and other essential services. To find out more, visit www.aarp.org/caregiving.
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About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the 125 million Americans 50-plus and their families: health and financial security, and personal fulfillment. AARP also produces the nation's largest-circulation publications: AARP The Magazine and the AARP Bulletin. To learn more, visit aarp.org, aarp.org/espanol or follow @AARP, @AARPLatino and @AARPadvocates on social media.
MEDIA CONTACT:
Ilse Zuniga, izuniga@aarp.org