Part of the SILVER CHALLENGES AND OPPORTUNITIES Series
Unpaid Care as Economic Infrastructure
Unpaid caregiving is not peripheral to economic systems; it is foundational. Across economies, the daily provision of childcare, eldercare, and household management sustains labor markets by enabling workforce participation and reducing the need for public expenditure. Without this labor performed predominantly by women, the cost of care would shift directly to governments or remain unmet, with significant consequences for economic productivity.
Despite its structural importance, unpaid care remains excluded from formal recognition. It is not accounted for in national income systems, nor is it systematically integrated into pension frameworks or social protection mechanisms. As a result, individuals who provide this labor contribute to economic output without accumulating corresponding financial security.
From a human capital perspective, caregivers represent a productive asset whose contributions increase national capacity. However, the absence of institutional recognition creates a fundamental imbalance: value is generated, but not retained by those who produce it.
The Scale of the Invisible Workforce
The magnitude of unpaid care work becomes evident when examined through labor force participation. The International Labour Organization (2024) reported that hundreds of millions of women were outside the labor force due to caregiving responsibilities. This pattern reflects a structural constraint rather than a temporary withdrawal from employment.
Time-use data further illustrates the imbalance. The UN Women and the International Labour Organization (2024) found that women performed the majority of unpaid care work globally, dedicating significantly more hours than men to activities that sustain households and communities.
When translated into economic terms, the scale becomes more pronounced. The World Economic Forum (2024) estimated that unpaid care work, if valued at market rates, would account for a substantial share of global economic output. Yet, unlike formal sectors, this contribution remains largely unmeasured in national accounts and excluded from social protection systems.
The consequence is not only statistical invisibility but long-term economic disadvantage, shaping income trajectories, employment opportunities, and retirement security.
| Role (Paid Equivalent) | Indicative Annual Value (Cross-Country Benchmark | sources |
| Childcare Worker / Nanny | $20,000 - $35,000 | https://www.ilo.org/global/topics/care-economy/lang--en/index.htm |
| Household / Domestic Worker | $18,000- $30,000 | https://www.ilo.org/global/topics/domestic-workers/lang--en/index.htm |
| Home Health / Care Nurse | $30,000 - $60,000 | https://www.oecd.org/health/health-data.htm |
| Fodd Preparation / Household Provider | $25,000 - $50,000 | https://www.bls.gov/ooh/ |
Note: These figures represent conservative annual market benchmarks derived from cross-country labor data published by the ILO, OECD, and U.S. Bureau of Labor Statistics. They do not constitute official global averages but are used to illustrate the approximate market value of unpaid care work when benchmarked against formal labor markets. Actual wages vary widely by country, regulation, and skill level.
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Lifetime Contribution and Structural Disadvantage
When unpaid care is assessed across the life course, it represents a sustained, multi-functional contribution. Caregivers coordinate household operations, manage financial resources, support human development, and provide health-related services all functions that would otherwise require formal employment structures.
Over extended periods, the cumulative value of this labor is substantial. However, the economic system does not convert this contribution into entitlements. Instead, caregiving years often coincide with reduced labor force participation, part-time employment, or career interruptions.
The Organisation for Economic Co-operation and Development (2025) reported that pension outcomes reflect these patterns. Women, whose employment histories are more likely to include caregiving interruptions, receive significantly lower pension benefits compared to men across many economies.
This disparity is not the result of lower productivity but of institutional design. Pension systems are typically structured around continuous formal employment, excluding periods of unpaid care from contributory calculations.
The Structural Design of Under-Recognition
The gap between contribution and compensation is embedded in policy architecture. Social protection systems are designed to recognize market-based employment, while unpaid caregiving remains classified as a private responsibility.
From a fiscal perspective, this arrangement externalizes the cost of care. Governments benefit from reduced public spending on childcare and eldercare, while households absorb the labor required to sustain these functions. Over time, this creates a transfer of value from caregivers to the broader economy.
The outcome becomes most visible in later life. Individuals who have provided extensive unpaid care enter retirement with lower savings, reduced pension entitlements, and greater exposure to economic insecurity. This is not an incidental outcome but a predictable result of systems that separate contribution from recognition.
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Policy Instruments for Structural Correction
The misalignment between unpaid care and social protection is not without solutions. Several policy mechanisms have been developed to address this imbalance, though implementation remains uneven.
One approach involves pension credits for caregiving years, allowing time spent in unpaid care to be counted within contributory systems. This aligns retirement benefits with actual lifetime contributions rather than uninterrupted labor market participation.
Direct caregiver support mechanisms, including stipends or allowances, provide income during active caregiving periods, reducing long-term financial exclusion. Tax-based interventions, such as credits or deductions tied to caregiving responsibilities, offer additional tools for improving financial resilience.
More comprehensive approaches include care-inclusive social insurance systems, which extend healthcare, disability coverage, and retirement benefits based on caregiving contributions. These models recognize care as an economic activity with long-term implications for both individuals and society.
These instruments are not theoretical. They exist in varying forms across countries, demonstrating that the issue is not a lack of policy options, but the prioritization of implementation.
Reframing Care as a Recognized Economic Contribution
The persistence of unpaid caregiving as an unrecognized economic input raises broader questions about how value is defined within economic systems. Current frameworks prioritize market participation while overlooking essential forms of labor that sustain it.
As populations age and care demands increase, this imbalance becomes more pronounced. The reliance on unpaid care without corresponding institutional support creates long-term risks, including increased old-age poverty, pressure on health systems, and intergenerational inequality.
A sustainable approach requires integrating care into economic and policy frameworks not as an auxiliary concern, but as a central component of social and economic planning.
Conclusion: From Invisible Labor to Accountable Systems
Unpaid caregiving has already generated substantial economic value. The remaining question is how systems account for that contribution over the life course.
The issue is not whether unpaid care has economic significance; evidence consistently demonstrates that it does. The challenge lies in aligning policy frameworks with that reality, ensuring that contributions made outside formal labor markets are reflected in social protection systems.
As aging populations expand globally, the cost of continued non-recognition will increase. Addressing this imbalance is not only a matter of equity, but of economic sustainability.
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Suggested Citation
Lendez, M. (2026). The Maria pension plan: The hidden cost of unpaid care in an aging world. Part of the Silver Challenges and Opportunities Series. Developed within the Ikigai-Bayanihan Purpose-Driven Retirement Framework.
About the Author
Written by Dr. Mariza Lendez, the developer of the Ikigai-Bayanihan Purpose-Driven Retirement Framework, a model that redefines aging through purpose, dignity, and community-centered living.
References
International Labour Organization. (2024). Care work and care jobs: Statistical brief.
Organisation for Economic Co-operation and Development. (2025). OECD employment outlook.
UN Women, & International Labour Organization. (2024). Estimates on unpaid care work and gender disparities.
World Economic Forum. (2024). The future of the care economy.
