Caregiving Crisis Fuels U.S. Workforce Shortages

The United States is experiencing a profound caregiving crisis that is directly contributing to workforce instability and economic strain. While the nation offers support for major financial milestones like education and retirement, unpaid caregiving for loved ones, undertaken by nearly 25% of American workers, remains largely unsupported. The financial burden is substantial, with home care averaging $34 per hour and assisted living exceeding $5,400 monthly. Childcare costs have also surged by approximately 30% since 2020, forcing many families to either absorb these expenses or dedicate themselves to caregiving, impacting their employment.

This caregiving burden translates into significant costs for employers, estimated in the tens of billions annually due to caregiving-related turnover, absenteeism, and reduced engagement. Despite these impacts, employer-provided care-related benefits are not expanding; in fact, some large employers have recently reduced benefits such as parental leave. This trend indicates a lack of strategic foresight and a disconnect from the well-being of the workforce, particularly as employee engagement remains at historic lows. Compounding these issues, a significant portion of U.S. workers, 67% in 2025, reported living paycheck to paycheck, with nearly 70% struggling financially, highlighting the urgent need for supportive policies and employer investment.

The demand for care services is escalating as the U.S. population ages. However, the workforce capable of providing this care is not growing sufficiently to meet the demand. Immigrants constitute over a quarter of the long-term care workforce, but policy changes have restricted this vital labor pipeline, intensifying existing shortages. This imbalance drives care prices higher, placing immense pressure on families already facing financial difficulties. The childcare sector is also experiencing similar strains, contributing to the broader caregiving crisis.