As of February 2025, the overall labor force participation rate for women in the U.S. stands at 57.5%. Five years ago, the rate was slightly higher (58.0% in February 2020). In that same period, the nation has debated inflation, infrastructure and interest rates. But it has largely ignored one of its most urgent and under-addressed crises: the continuing departure of working mothers from the labor force.
Sheryl Sandberg recently wrote, “The best way to have a strong economy is to unlock the full potential of women in our workforce.” She estimated that if women’s workforce participation in the U.S. matched the highest levels seen in peer nations (Canada, France, Germany, Italy, Japan and the U.K.), 7 million more women could join the U.S. workforce, fueling up to 4.2% in economic growth. The continued decline in mothers’ workforce participation threatens this opportunity and signals long-term consequences for GDP growth, family economic mobility and national competitiveness.
A Crisis Born in 2020 and Still Unresolved
When Covid-19 struck in early 2020, women were more likely than men to leave the labor force due to increased caregiving responsibilities, school closures and the collapse of the childcare infrastructure. According to the Bureau of Labor Statistics, mothers accounted for a disproportionate share of job losses and voluntarily left jobs in record numbers.
Many of those working mothers never returned to full-time employment. Some re-entered the workforce part-time, others became entrepreneurs and many continued to shoulder unpaid caregiving at home. These patterns point to persistent structural issues that remain unresolved: a lack of affordable childcare, limited workplace flexibility and social policies that fail to account for the realities of modern parenting.
Mid-Sized Cities Are Feeling It
While large cities like New York, Los Angeles and Chicago often dominate national headlines, the economic ripple effects of mothers exiting the workforce are most visible in mid-sized American cities, places like Greensboro, North Carolina, or Chattanooga, Tennessee. These cities make up a significant share of the country’s population and GDP. They rely heavily on every worker, every taxpayer and every consumer.
The departure of working mothers in these communities isn’t just a policy failure. It’s a visible economic shift. These cities are not just losing employees; they’re losing future homeowners, entrepreneurs, civic leaders and financial contributors. With fewer workers, local economies shrink, tax revenues drop and the demand for goods and services declines. This erosion compounds over time, weakening the very foundation of community-based economic development.
Healthcare, Education and Childcare on the Brink
Sectors traditionally powered by women (healthcare, education and childcare) are still under intense strain. Hospitals are scrambling to fill nursing and administrative positions. School systems are experiencing high turnover, leading to larger class sizes, less personalized learning and higher burnout among remaining staff.
The childcare sector is perhaps the most acutely affected. With declining enrollment and chronic staffing shortages, many centers are reducing hours or shutting down altogether. This deepens the already severe childcare crisis and creates a vicious cycle: without accessible childcare, mothers can’t return to work even if they want to.
It’s Not Just a Gender Issue. It’s an Economic Emergency.
This is not simply a women’s issue. It’s an economic emergency hiding in plain sight.
The data tells a troubling story: the U.S. labor market is stagnating, not because women are unwilling to work, but because we’ve made it unsustainable for them to do so. We are watching a preventable crisis unfold in slow motion, and its consequences are becoming harder to ignore.
What Happens if the U.S. Does Nothing?
Suppose the U.S. continues to overlook the mass departure of working mothers. In that case, it will not only forfeit trillions of dollars in potential GDP growth, but it will also allow the backbone of local economies to erode, starting in mid-sized cities and rippling outward. These communities will become cautionary tales of what happens when the economy no longer works for the people who hold it up.
We have a choice. America can invest in policies and infrastructure that enable mothers to thrive in the workforce through affordable childcare, flexible work arrangements, paid leave, and pathways for reentry. Or, America can accept the economic stagnation that follows their continued exit.
The future of America’s productivity, equity and prosperity depends on whether we finally recognize working mothers not just as caregivers, but as essential drivers of our national economy.