Source: Fortune
Summary
A Government Accountability Office (GAO) report estimated that unpaid household labor in the U.S. is worth up to $6 trillion annually, or one-fifth of GDP. The work, which includes chores and caregiving, is not counted in GDP because no money changes hands. Over 87% of Americans aged 15 and older perform unpaid household tasks daily, averaging 3.72 hours per day. Economists argue that this labor supports the formal economy by reducing the need for paid services. The report highlights gender disparities, with women doing significantly more unpaid work than men.
Our Reading
The numbers tell one story.
Unpaid labor is worth $6 trillion but not counted in GDP.
Women do twice the cooking and cleaning as men.
Economists say unpaid work supports the formal economy.
Productivity debates ignore caregiving and chores.
Author: Evan Null
GDP counted one job, but not the other
The GAO report highlights a growing disconnect between economic metrics and real-world labor. While GDP measures paid work, it ignores the massive contribution of unpaid household tasks. This gap has real economic implications, as families rely on unpaid labor to manage daily life. When women entered the workforce in the 1960s, GDP grew, but the loss of household labor wasn’t accounted for. This created an artificial boost in economic growth. The report suggests that economic models need to evolve to reflect the true value of all labor, not just the paid kind.
Who still does the unpaid work
Women continue to bear the brunt of unpaid household labor, despite earning more than men in some cases. The GAO found that 54% of those doing unpaid work between 2021 and 2024 were women, and they spent more time on childcare than men. This imbalance contributes to stress and burnout, particularly among working women. Economists argue that valuing unpaid labor could lead to more equitable distribution of household responsibilities. However, the report also warns against romanticizing a return to traditional roles, as it could be disempowering for women.
Unpaid labor shapes economic growth
The GAO report shows that unpaid work has a measurable impact on economic growth. From 1965 to 2020, GDP grew at an average of 6.3% per year, while a different measure that included household labor showed slightly lower growth. This suggests that the traditional GDP model may overstate economic progress by ignoring the value of unpaid tasks. The report calls for a broader definition of productivity that includes caregiving and domestic work. This shift could change how economists and policymakers view labor and economic output.
Productivity debates ignore caregiving
Current productivity discussions focus heavily on office-based work, but caregiving and household management are also forms of productivity. Economists like Nancy Folbre argue that these activities are essential to maintaining a functioning economy. By not recognizing them, the system underestimates the true cost of living and the value of human care. This oversight affects how families manage their finances and how workers balance their roles. The GAO report suggests that rethinking productivity could lead to more accurate economic measurements and better support for workers.
Gender disparities in unpaid labor
Despite progress in the workforce, women still do the majority of unpaid household work. This imbalance contributes to stress, burnout, and a lack of work-life balance. The GAO report highlights that women spend more time on childcare and housework than men, even when they earn less. This dynamic reinforces traditional gender roles and limits women’s ability to fully participate in the economy. The report calls for a reevaluation of how unpaid labor is valued and distributed, emphasizing the need for more equitable sharing of household responsibilities.
