Are Women Leaving the Workforce?

In the words of Kim Kardashian, “It seems like nobody wants to work these days.” Is that true? Are women in the United States actually leaving the workforce in significant numbers? This question has gained urgency amid reports that many women, particularly mothers of young children, have been dropping out of jobs due to rising childcare costs and other pressures.

Women’s labor force participation has not fully recovered and remains slightly below pre-2020 levels, even as men’s participation has nearly bounced back. Moreover, the departures are not evenly distributed – mothers of young children appear to be the hardest hit. In 2023, about 74 percent of all mothers with children under 18 were working, compared to over 93% of fathers with kids that age. For mothers of children under 6, participation was even lower (only 68.9%) – significantly below the rate for other parents. These gaps underscore that many mothers, unlike most fathers, are stepping away from paid work.

Image Credit: U.S. Chamber of Commerce

Even as of 2024, an estimated 560,000 parents (overwhelmingly women) who wanted to work were not actively job-hunting because they couldn’t find childcare. 16 percent of mothers of young children (under age 6) also stated that while they wanted to work, childcare was their main barrier. In short, yes – women, and especially mothers of little ones – are leaving the workforce at disproportionate rates.

The Childcare Cost Crisis

One major factor pushing women out is the skyrocketing cost of child care and the lack of affordable options.

Image Credit: Bank of American Institute

Simply put, child care has become prohibitively expensive in much of the U.S., often rivaling a second mortgage or college tuition payment. Nationally, the average cost of center-based child care for one child was about $9,200 per year in 2023, roughly 10% of a median family’s income – well above the 7% of income that the U.S. government deems affordable. In some states the burden is far higher: for example, in New York and Massachusetts, a year of infant care costs over one-fifth of a household’s income on average. In fact, paying for a baby’s daycare now exceeds the cost of in-state college tuition in 38 states. It’s no surprise, then, that many families feel they have “no choice” but for one parent to stay home rather than pay such sums – and overwhelmingly that parent is the mother.

This is beginning to have spillover impacts on our overall economy. A recent report found that the U.S. infant-toddler child care crisis now costs $122 billion annually in lost earnings, productivity, and tax revenue—more than double the 2018 estimate. Parents face frequent work disruptions, which women are disproportionately impacted by, leading to $78 billion in lost income, while employers lose $23 billion and taxpayers lose $21 billion yearly.

This $122 billion price tag reveals the real problem: not feminine workplace behavior, but an economy that refuses to invest in the infrastructure parents, including fathers, need to work. When parents can’t find or afford reliable care, businesses lose workers, taxpayers lose revenue, and children lose critical early development opportunities. While some would like to argue that women are ruining the workplace, data points elsewhere. (Sorry Helen Andrews!)

Image Credit: Strong Nation

We Need to Stop Having Mothers Choose

Another major driver behind women’s workforce exodus is the persistence of inflexible work policies that clash with caregiving responsibilities. Even as society has changed and dual-income families are common, many workplaces still operate on the assumption that employees have someone else at home handling child care. The pandemic temporarily disrupted this norm – with remote work and flexible schedules becoming more widespread – but as those measures recede, working mothers are once again finding themselves at a breaking point.

We discussed this at length in our prior conversation with Rep. Brittany Pettersen, where even members of Congress were forced to choose between prioritizing their child, or being able to show up for their job, and thus constituents. Without structural support, women are forced into an impossible bind: job or family. It’s no wonder that so many choose family when workplaces are unable to bend.

The good news is we don’t have to guess whether affordable childcare would actually keep women in the workforce, we have proof from places that have already done it. Looking abroad and closer to home reveals that affordable childcare isn’t just a social good. it’s an economic multiplier.

Quebec, Canada has operated a low-fee universal childcare system since the 1990s, originally charging families around $5–$8 per day. The results speak volumes: Quebec’s female labor force participation now rivals Sweden’s, sitting roughly 10 percent higher than in the United States. Economists have found that Quebec’s program pays for itself, the surge of mothers entering the workforce generates tax revenue that exceeds the program’s costs. The policy cut the number of single parents receiving social assistance by more than half within a decade, demonstrating how universal childcare creates net economic gains by expanding the tax base while reducing dependency on government aid.

Washington, D.C.’s universal pre-K program, which has offered two years of free public preschool for 3- and 4-year-olds since 2009, increased labor force participation among mothers of young children by 12 percent. The Center for American Progress attributes roughly 10 points of that increase directly to the preschool program enabling parents to work. This local success story reinforces what the data consistently shows: public investment in early childhood education keeps mothers in their careers.

A New Model for Parents

Beyond direct government programs, innovative partnerships between employers, states, and families are proving that childcare costs don’t have to fall entirely on parents’ shoulders. Michigan’s Tri-Share Program offers a compelling model: the initiative splits childcare costs three ways, with employers, parents, and the state each covering one-third. Launched as a pilot in 2021, the program has grown rapidly. Today, twelve regional hubs help coordinate participation across most of Michigan, reaching sixty-four of the state’s eighty-three counties—while a central administrative partner supports those hubs and ensures families in the remaining counties can also take part.

Early data show encouraging progress. Families in the program have seen their childcare bills shrink by roughly two-thirds, and more than 80 percent of participating parents say the program makes them more likely to stay in their current jobs. Businesses from sectors as varied as manufacturing, health care, and education have also gotten on board, recognizing Tri-Share as a practical way to keep skilled workers and reduce turnover. This model shows how spreading costs across multiple stakeholders makes childcare affordable for families while keeping talented workers on the job, a win for parents, employers, and state coffers alike. When everyone chips in, everyone benefits.

Quality early-childhood programs yield extraordinary returns to society, estimates can be as high as $17 returned for every dollar invested. These returns accumulate through parents’ increased earnings, children’s improved educational and career outcomes, and reduced social costs over time. While universal childcare requires significant upfront public investment, the payoff in higher GDP, lower poverty rates, and better life outcomes makes it sound economic policy, not just good social policy.

Freedom to Choose, Not to Sacrifice

Women should have the right to feel that their job is one they have freely chosen. For those who wish to stay home and take on the role of homemaker, it should be because they chose to do so; not because they felt pressured to leave their positions due to financial constraints. Right now, an entire segment of our population faces such a barrier, and it’s within our power to remove it. By making quality child care affordable and accessible, we can empower millions of women to pursue their careers and dreams. We can ensure children are nurtured in safe, stimulating environments while their parents work, which pays dividends for everyone down the line.