United WE Calls for Renewed Action on Care Economy in Response to Drop in Women’s Labor Force Participation Rate

United WE research has found that women are three times more likely than men to leave the workforce because of child care.

United WE, a national nonpartisan nonprofit dedicated to advancing women’s economic and civic leadership, called for decisive action on the care economy in light of recent data showing a marked drop in women’s workforce participation, especially among women with young children.

According to the most recent jobs report from the U.S. Bureau of Labor Statistics, More than 200,000 women have left the labor force since January, and the workplace participation rate for women ages 25 to 44 who live with a child under five fell nearly three percentage points, from 69.7% to 66.9%.  

“The recent decline in women’s labor force participation is a stark reminder of the urgent need for a robust care economy,” said Wendy Doyle, President and CEO of United WE. “Our research consistently shows that caregiving challenges – from child care to elder care – disproportionately affect women, but the economic impact touches everyone. Now is the time for policymakers, employers, and communities to come together to implement policies that support families and ensure women can fully participate in our economy.”

United WE research has found that women are three times more likely than men to leave the workforce because of child care. And 60 percent of women entrepreneurs surveyed reported that the lack of affordable childcare was making it harder for them to run their businesses. Across the country, tens of millions of women live in childcare deserts without a single accredited childcare facility.

A study by the U.S. Chamber of Commerce Foundation found that states lose an average of $1 billion in economic activity each and every year due to breakdowns in child care access. A recent AARP report found that roughly 1 in 4 American adults are caregivers, with 59 million caring for adults and 4 million caring for children under 18 with an illness or disability.

Among the actions recommended by United WE:

• Increase employer awareness and education - to encourage more employers to take advantage of new and existing incentives, including those in the recently passed federal tax bill. 

• Enact policies to help parents and employers offset the costs of child care. For example, during the 2025 Missouri legislative session, a bill that would have enacted tax credits to help parents, employers, and providers offset child care costs won bipartisan support. 

• Reduce unnecessary and duplicative regulations that make it harder for child care providers to open and operate, without protecting health and safety.

• Recognize more categories of care, such as elder care, and the need for flexible care during nonstandard hours - especially for those performing manufacturing shift work or running their own businesses.