US sees decline in women's workforce participation after pandemic highs
US women's labor force participation dips as childcare costs soar and remote work options dwindle. What experts say could potentially add 5 million employed women—boosting economic activity. August 15th 2025, Tiffany LaneNew labor statistics show a troubling reversal for women in the workforce, with participation rates falling after pandemic-era highs.
Experts say rising childcare costs and reduced remote work options are major factors driving women — especially mothers with young children — out of the labor market.
Fewer women, more men in recent jobs data
According to the Bureau of Labor Statistics, 212,000 women left the workforce this year, either by quitting their jobs or stopping their search for work.
During the same period, 44,000 men gained employment.
Working mothers facing steady decline
A separate survey found that the percentage of working mothers with young children has dropped every month since January.
Experts link this trend to return-to-office mandates and the soaring cost of childcare, which in many cases outpaces a parent's take-home pay.
Limited telework options for many jobs
Many service, healthcare and education jobs offer little to no opportunity for remote work.
Telework is also tied to education levels: 34% of mothers with a bachelor's degree and 36% with an advanced degree reported teleworking in the previous week, compared to just 4% of mothers without a high school diploma.
Even when telework is possible, experts stress it is no substitute for reliable, affordable childcare.
US trend differs from other advanced economies
The United States is the only advanced economy where the share of women in the workforce is declining rather than growing. Countries like Canada and Germany — both of which have national paid leave and comprehensive family-support policies — have seen higher labor participation rates among women.
Potential economic gains from policy changes
Analysts estimate that if the United States matched the labor force participation rates of Canada or Germany, roughly 5 million more women would be employed, generating more than $775 billion in annual economic activity.
Advocates say expanding access to paid family leave and investing in the nation's care infrastructure could help reverse the decline and stabilize employment for mothers.
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