Caregiving is increasingly reshaping the American workforce. Nearly 1 in 4 workers now provide unpaid care to an aging parent, child, or family member with a disability or chronic illness. For many, the responsibility of caregiving carries serious financial consequences. The costs are particularly stark for women, who shoulder the majority of both childcare and elder care in the U.S. 

As the cost of care continues to climb, many households are forced to make difficult choices about work, income, and family responsibilities. National median costs for home care reached a record $34 per hour in 2026, while the monthly cost of assisted living now exceeds $5,400, up roughly $200 from 2025. For families with young children, childcare costs remain equally daunting: between 2020 and 2024, prices rose nearly 30%.

For most American households, such high costs are difficult—if not impossible—to manage. Without a financial cushion, families absorb caregiving responsibilities themselves. Many women reduce their hours, pause their careers, or exit the workforce altogether. Financial Health Network research found that 70% of women with children under the age 18 reported making a career change, while more than 50% with children under the age 12 who aren’t working say they would like to work more, but cannot because of the rising costs of child care.

These realities not only delay the career progression of women in the workforce, but also have a negative economic impact. Analysis by the National Partnership for Women & Families found that if the U.S. adopted caregiving and family leave policies similar to those of other advanced economies, it could add nearly 4.85 million more women to the workforce and boost annual GDP by as much as $775 billion. 

Addressing this challenge requires reimagining how we support the workforce. By investing in systemic solutions that stabilize both household finances and support working families, employers and policymakers can help advance meaningful progress in financial health and improve the broader economy.

The caregiving crisis is taking place against a backdrop of widespread financial vulnerability. Our latest research shows that just 31% of U.S. households are considered Financially Healthy, while the remaining 69% struggle to manage daily expenses, debt, and savings.

At the same time, the care economy is currently facing a double threat: surging demand from an aging population combined with a shrinking supply of workers. As Baby Boomers age, demand for senior care continues to grow. Yet the labor force needed to carry out that care is struggling to keep up. 

Immigrants account for 28% of the long-term care workforce, yet recent immigration crackdowns and sweeping federal policy changes are driving these essential workers out of the field. With nearly 1in 5 health care workers being foreign-born, the result is a labor shortage that pushes prices even higher for families already at their breaking point.

Families reliant on childcare face similar economic strain. Daycare centers notoriously operate on razor-thin margins. Even modest increases in expenses can quickly translate into higher tuition for families, driving the cost of care upwards—all while providers struggle to stay afloat.

Because the workplace is where most Americans access the resources they need to build financial health—from wages to healthcare benefits—it is also a powerful site to deliver solutions. 

The Financial Health Network’s Essential Benefits framework offers employers a path for strengthening workers’ financial health while supporting employees navigating caregiving responsibilities. When employers pull specific levers on the benefits to their employees, they can materially improve their workers’ lives:

Living wage
Earning at least a living wage—defined as the earnings a full-time worker must earn to cover the basic needs for a family of four with a working spouse—is the strongest predictor of financial health, associated with a 6-point increase in FinHealth Scores®. Living wages are more common among groups that historically report higher levels of financial health: men, people who are white or Asian, those with post-secondary degrees, employees in traditional employment roles, or those working at larger companies. For organizations like Bangor State Bank, prioritizing living wages for their employees has increased the ROI of their entire benefits program. “We found [when] employees weren’t past that living wage threshold, any other benefits actually had less of a positive impact than had they been past it,” says Sandra Klausmeyer, the bank’s Senior Vice President, Director of Strategic Initiatives.  

Paid family leave
Providing paid leave allows caregivers to maintain income during caregiving responsibilities. Our analysis shows that access to paid family leave is associated with a 5-point boost in FinHealth Scores, providing a critical buffer that allows caregivers to maintain income while managing family responsibilities. Employees with paid leave are significantly more likely to spend less than they earn, maintain emergency savings, manage debt effectively, and feel confident about their long-term financial goals. Without benefits to support caregiving, workers are often forced to choose between a paycheck and a loved one, leading to deeper financial vulnerability.

Childcare subsidies
While employer support paying for childcare is still gaining traction in workplaces, research already points to the efficacy of these benefits in supporting financial health. Our analysis shows that among households with children under the age of 18, childcare subsidies are associated with a 6-point increase in FinHealth Scores, on par with tried-and-true benefits like retirement plans. 

Scheduling adjustments
Simple practices like shared calendars with “Do Not Schedule” or “Ask Before Scheduling” blocks reduce mental load for caregivers, empower employees to manage personal needs without using full PTO, and support productivity.

The most effective essential benefits framework is built with everyday employees in mind. When benefits are meaningfully designed, particularly for women or caregivers, their impact becomes tangible.  

These investments benefit more than workers alone. A growing body of research suggests a clear link between employee financial health and retention: Financially Healthy employees report a greater intent to stay at their jobs long-term, reducing the high cost of replacement while improving productivity and engagement in the workplace. On the other hand, experiencing financial stress has negative repercussions on performance, underscoring the business case for employers to find solutions.

Building a resilient workforce requires centering financial health when designing and implementing employee benefits and workplace policies. Without stronger caregiving support systems—such as a national paid leave policy and other programs—the burden will continue to fall on individuals who must choose between their jobs and their loved ones.

Paid caregiving leave is not simply an employee benefit; it is a strategic investment in building a resilient workforce and promoting long-term economic growth. As economic pressures mount and caregiving demands rise, employers that embed caregiving support into their total rewards strategy will be better positioned to attract talent, reduce turnover, and build the kind of workplace that benefits workers and the bottom line alike.