Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Indiana’s economic future depends on talent. But we are quietly losing experienced professionals at the exact moment employers need them most — and caregiving is one of the most significant drivers.
This is not a marginal workforce issue. It is a structural one.
Indiana’s labor force participation rate is approximately 63.4%, according to the U.S. Bureau of Labor Statistics, meaning more than one-third of working-age Hoosiers are not currently employed or actively seeking work. This group includes students, retirees and individuals with disabilities, but caregiving responsibilities are also a significant factor keeping many adults, particularly women, out of the workforce. Nationally, nearly one in four adults serve as caregivers, and caregiving is one of the leading reasons working-age adults reduce hours or leave employment.
Many mid-career professionals are leaving the workforce because they lack support.
More than 53 million Americans, roughly 1 in 5adults, provide unpaid care for a loved one, according to AARP and the National Alliance for Caregiving. The majority of caregivers are working-age adults, and approximately 70% of caregivers aged 18 to 64 are employed while providing care. For many, the demands eventually require reducing hours, turning down advancement opportunities or leaving the workforce entirely.
Indiana’s economic data reflects the consequences.
A report from the Indiana Chamber of Commerce Foundation found that insufficient child care alone costs Indiana’s economy an estimated $4.22 billion annually due to absenteeism, turnover and employees leaving the workforce, underscoring the broader economic impact of caregiving responsibilities on talent retention. These losses ripple across industries, reducing productivity, increasing turnover costs and weakening leadership pipelines.
Women are disproportionately affected. In Indiana, about 63% of women participate in the labor force, compared with 73% of men, according to the Women’s Fund of Central Indiana. This gap has remained persistent for years and reflects structural realities, including caregiving responsibilities and workforce design, not a lack of capability or ambition.
When experienced professionals leave mid-career, businesses lose institutional knowledge, client relationships and leadership continuity. Replacing experienced employees can cost up to twice their annual salary. In high-skill industries such as life sciences, manufacturing and health care, replacement timelines can extend to months or longer.
This creates a hidden drag on Indiana’s economic competitiveness.
Indiana has invested billions to attract employers and build talent pipelines. But talent attraction alone cannot solve a retention problem. Ascend Indiana has warned that workforce growth is increasingly constrained by declining labor force participation and an aging population, making talent retention essential to the state’s economic future.
Simply put, we cannot grow our economy if experienced professionals are forced out.
This is especially urgent given demographic trends. By 2030, all baby boomers will be age 65 or older, significantly increasing the demand for caregiving. At the same time, workforce growth is slowing as fewer younger workers are entering the labor force than retiring experienced workers are leaving it, creating a major constraint on Indiana’s long-term economic growth.
The math will work in Indiana’s favor only if employers adapt.
Forward-thinking companies are already recognizing caregiving as a workforce-retention issue. They are implementing flexible scheduling, creating pathways to keep employees engaged during caregiving periods, and designing policies that protect long-term talent. This is not about lowering expectations. It is about protecting business continuity.
Caregivers are not less-committed employees. They are often among the most experienced and capable professionals in the workforce. But when workplaces fail to recognize caregiving realities, businesses lose trained leaders they cannot easily replace.
Indiana’s economic strength has always depended on pragmatic leadership. We have built world-class industries in manufacturing, life sciences and technology by investing strategically in talent.
Now we face a new challenge: ensuring that talent can stay.
Caregiving is not a temporary workforce disruption. It is a permanent structural shift. Employers who recognize and respond to this reality will retain experienced professionals, strengthen leadership pipelines and position themselves for long-term growth. Those who do not will continue to lose the very people they cannot afford to replace.•
__________
Bonilla is president of Women’s Equity Enterprise, the Indianapolis-based organization behind WE Talk, a leadership collective, and WE Brunch, a community platform advancing women’s economic mobility and leadership.
Please enable JavaScript to view this content.