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Economic Value of Family Caregiving in South Dakota Reaches $2.5 Billion Annually

150,000 family caregivers of adults contribute 106 million hours of care annually.

AARP

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South Dakota’s family caregivers now provide $2.5 billion worth of labor each year, 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.

Why this matters: Without family caregivers, many more South Dakotans would rely on expensive institutional care, driving significantly higher costs for taxpayers and public programs.

“Family caregivers are a major economic force that fills critical gaps in our health care system,” said Erik Gaikowski, AARP South Dakota State Director. “The economic value they provide now exceeds $2.5 billion annually, yet this care often comes at significant cost to caregivers’ health, financial security and well-being. AARP is elevating this important issue and fighting to save family caregivers time and money.”

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

150,000 South Dakotans are caregivers of adults, providing care for older parents, spouses, neighbors and other loved ones, contributing 106 million hours of care annually, work that would be valued at $2.5 billion per year if paid in the marketplace, based on a value of $23.22 per hour.
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.

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National Findings:

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.

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.

AARP continues federal and state advocacy efforts to save caregivers money, time, and get them the support they deserve. AARP South Dakota, for example, has supported legislative efforts to enhance timely and efficient access to Home and Community-Based Services (HCBS), to fund adult day centers and to enhance rural health care access through provisions such as the Advanced Practice Registered Nurse Compact.

That measure, which passed during the 2024 legislative session, promotes quality of care and streamlines access to Advanced Practice Registered Nurses so that people can receive care close to home, where they want to be.

AARP also helps families navigate caregiving challenges by connecting them to trusted resources. AARP South Dakota’s Family Caregiving Resource Guide helps family caregivers access key programs, services and agencies right in their community. AARP South Dakota also collaborates with the Helpline Center on a service that allows family caregivers to sign up for phone or text support from trained staff. The program is free to participants, and any South Dakota resident age 18 and older who cares for an adult without pay is eligible. To enroll or to refer someone, simply call the Helpline Center at 211 and ask about the Caregiver Support Program.

Read the full Valuing the Invaluable Report here, and learn more about AARP resources for family caregivers at www.aarp.org/caregiving.