The defender is preparing for his 30th and final Merseyside derby this weekend as he comes to the end of a distinguished career with the Reds, before joining Sky Sports next season as a pundit.
"Last week at Newcastle (in the 6-0 victory) how he marshalled the defence and how he played - everything about his game is at the top level," said Rodgers of the 35-year-old.
"I can't think of enough words to describe him. His performance level has been incredible.
"It (retirement) is such a shame because he probably could play on but he has already made his mind up.
"His dream was to go out at the top and he is fulfilling that dream because he is a top operator at this level.
"But his concentration will be on the games and no further than Everton."
For Bootle-born Carragher, a boyhood Everton fan, and club captain Steven
Gerrard, from Huyton, the Merseyside derby is key date in the fixture list.
"Everton is a massive game for Jamie, he's a boy from the city and Steven (Gerrard) as well," Rodgers added.
"These are guys who have shown passion in every single game - but this one adds a little bit more for them.
"I am sure Jamie will want to play his last derby and finish it on a high."