Unpaid Caregiving in America estimated at $600 billion/year

The U.S. economic impact of unpaid caregiving in America is surprisingly high. It was over $480B/year in 2009 and $600B/year in 2023, according to the AARP infographic shown below. Since this is on top of the $4.7 trillion spent on healthcare in 2023, our real cost is closer to $5 trillion. Ouch!

While estimates of unpaid caregiving costs from different sources and time periods can differ, they should all include lost worker productivity, reduced earning capacity, lost retirement income, and increases in one’s own physical & emotional health and related costs. AARP’s $480B 2009 estimate was about 3.2% of the U.S. GDP ($14.1 trillion in 2009). It was more than Medicaid spending ($361B) and nearly as much as Medicare ($509B). It was also more than half of what we spent on defense. The burden was even worse for long-distance caregivers, and all of this was ignored in published healthcare spending estimates.

According to New York Presbyterian Health Matters, one of the most important jobs in healthcare isn’t performed at a hospital or medical clinic. It’s often in the home, where caregivers juggle caregiving with paid work. Tens of millions of Americans are unpaid caregivers. Although they do it out of love or obligation, the task of caring for a loved one takes a personal and financial toll that we must account for. We must also protect ourselves as caregivers.

The updated infographic below details the economic value of unpaid caregiving in the U.S.

Avoid Caregiver Burnout

To properly look after a loved one in need, caregivers must maintain their own health and well-being.

Nearly 1 in 5 adults serve as unpaid caregivers. And some 27% of them are in the sandwich generation, also caring for young children. While caregiving can be rewarding, it is also demanding, isolating, stressful, and costly. Working an average of 24 hours per week beyond paid work, caregivers perform tasks that are both practical and personal, from driving loved ones to doctor appointments to helping with dressing, bathing, and other activities of daily living.

With so much time spent looking after someone else, caregivers can easily neglect themselves. So I remind you it’s important to take care of yourself. It’s like when the airline steward reminds us to secure our oxygen mask first. You’re of no help to others if you don’t take care of yourself.

• Keep up with your own medical screenings and appointments, and exercise to stay fit.
• Take time out for yourself to recover from the stress.
• Practice meditation and relaxation techniques, including slow, deep breathing with eyes closed.
• Be mindful of your moods and emotions, which can include impatience and frustration.
• Don’t bear all the weight yourself, but seek help from other family members, a professional counselor, or a support group if needed.

Related Articles about Unpaid Caregiving

In addition to other caregiving articles on this site, and our long list of online resources, here are some favorites:

• How Much Does Caregiving Cost (older article with other infographics)
• A Guide for the Older Caregiver
• It’s Time to Take Care of Yourself