The cost of caring for children, growing old, being ill, or otherwise needing care has never been higher.
According to a recent report from AARP, roughly 38 million family caregivers provided an estimated 36 billion hours of care in 2021, contributing an estimated economic value of approximately $600 billion. However, family caregivers often provide this financial, social, and medical support for no pay.
"America has become a nation of caregivers," Jason Resendez, president and CEO of the National Alliance for Caregiving, told Yahoo Finance. "Yet, their work often goes unrecognized by policymakers and employers. As a result, more than 40% of family caregivers report negative financial impacts due to their caregiving responsibilities — they leave work, stop saving for retirement, and go into debt."
Caregiving needs have also led to job losses, particularly since three-fifths of family caregivers are active in the U.S. workforce. In 2021, the need for caregiving led to the loss of more than 650,000 jobs, which has an economic effect of roughly $44 billion, according to Blue Cross Blue Shield. An additional 800,000 caregivers suffered from absenteeism issues in the workplace because their caregiving roles are so time-consuming.
On April 18, President Biden signed an executive order aimed at supporting family caregivers. The order directs state and federal agencies to improve jobs and compensation for caregivers, increase access to affordable care for families, and improve data and information on the care workforce among other measures.
Biden noted the order "doesn't require any new funding" and will aim to better the support for care workers and family caregivers.
An increasingly aging population
As America's population continues aging, there is an increasing need for caregivers.
By 2040, there will be 80.8 million people aged 65 and above, according to U.S. Census Bureau projections. But even though there are at least 3 million U.S. caregivers who are considered Gen Z, the number of young people who are able to support this aging population may not be enough.
Overall in the U.S., there are 114.5 caregivers for every 1,000 residents. West Virginia and Mississippi are the states with the highest number of caregivers per capita, while Midwest states like North Dakota, South Dakota, Nebraska, Minnesota, and Michigan are on the bottom end with less than 100 caregivers per 1,000 people.
“As the major public payer for long-term services and supports and regulator of providers, states are facing the challenges of helping families live in their homes and communities while grappling with the shortage and working conditions of direct care workers — with increasingly aging populations,” Hemi Tewarson, executive director at the National Academy for State Health Policy, told Yahoo Finance.