A Government Accountability Office (GAO) report estimates that unpaid household labor in the US is worth up to $6 trillion annually, equivalent to one-fifth of the country’s GDP. The report highlights that over 87% of Americans aged 15 and older perform unpaid household work daily, averaging 3.72 hours on tasks such as cooking, cleaning, and childcare, which are not reflected in official GDP statistics, according to fortune.com.
The GAO’s findings reveal that this unpaid labor, despite its economic value, remains excluded from GDP calculations because no money changes hands. Misty Heggeness, an associate professor of economics and public affairs at the University of Kansas, explained that without these household activities, the formal economy would face increased costs as families would need to purchase these services. This exclusion distorts the measurement of economic growth and living standards, as the formal labor market does not capture these essential contributions, fortune.com reported.
The report underscores how traditional GDP metrics fail to account for significant economic activities, especially those predominantly performed by women. Historically, as women gained access to higher education and formal employment since the 1960s, GDP figures rose without reflecting the reduction in unpaid household labor. This omission affects the understanding of productivity and economic well-being, emphasizing the need for more inclusive economic indicators, according to fortune.com.
The GAO report was published in September and represents one of the most comprehensive assessments of unpaid household labor’s economic value in the US. It calls for policymakers and economists to reconsider how GDP is calculated to better represent all forms of labor contributing to the economy, as detailed by fortune.com.