The Macroeconomic Implications of Care Work

Despite their crucial role in our economy and society, care workers have long been neglected, and their contributions undervalued (Kinder 2020). Even after the pandemic made this critical role clearer than ever, care workers have experienced one of the most incomplete economic recoveries post-pandemic. The care workforce—consisting of childcare workers, health-care and personal support workers, and residential advisors—was one of the hardest-hit sectors of the economy during the pandemic and has yet to fully recover: Compared with pre-pandemic employment levels, more than 230,000 care workers are still missing from the labor market. This brief argues that the continued growth and stability of the US economy will require government to rethink how it responds to America’s collective care needs.¹

Employment in care work is a vital component of the US economy and not just because the availability of care services enables individuals with care responsibilities to participate in the labor market.

Currently, there are more than 4.8 million workers who provide us with childcare and eldercare, and attend to our health and disabilities. Adding teachers to the care workforce sums to 12.2 million workers—representing about 7.6 percent of total employment.² Yet, the extent to which their work is undervalued and underpaid creates financial instability for care workers and risk for our entire economy.