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Caregiving Costs Drive 455,000 Women Out of Workforce in 2025

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Briefs Finance
Published Feb 2, 2026
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Summary:

  • Approximately 455,000 women left the workforce between January and August 2025, according to Bureau of Labor Statistics data.
  • 42% of women who quit cited caregiving concerns, including child care costs, as their main reason for leaving.
  • 57% of women surveyed left voluntarily, while 43% were laid off, with 53% of women of color reporting layoffs.

Caregiving as a Key Factor

According to new data from Catalyst, caregiving responsibilities, particularly child care costs, were the primary reasons women left the workforce in 2025.

A significant 42% of women who quit their jobs pointed to these concerns as their top reason for departure. This trend affected approximately 455,000 women between January and August 2025, as reported by the Bureau of Labor Statistics.

Impact of Layoffs

The Catalyst survey, which included responses from over 200 women who left the workforce either voluntarily or involuntarily since January 2025, revealed that 57% of these women left on their own accord.

In contrast, 43% were laid off, with women of color facing layoffs at a higher rate of 53% compared to 37% for white women. Ayanna Gay, a 33-year-old from Sanford, Florida, shared her experience of being laid off while on maternity leave. Her nonprofit organization cut 20% of its staff after losing a major funder.

The Role of Employers

Sheila Brassel, a director of research at Catalyst, highlighted that the shifting priorities of companies have played a significant role in this trend.

During the pandemic, many organizations adapted by offering remote work, flexible hours, and child care support, which helped women remain in the workforce. However, recent efforts to return to office settings and deprioritize diversity, equity, and inclusion (DEI) initiatives have made it more difficult for women to balance their careers and caregiving responsibilities.

Future Implications

Brassel warns that if employers continue to retreat from equitable workplace practices, they risk weakening their talent and leadership pipelines.

She emphasized the importance of maintaining a focus on flexible work and fair pay to support working women. As many women face challenges returning to the workforce, it is essential for employers to consider the unique needs of mothers and caregivers.

Next Steps for Employers

To better support and retain working women, Brassel suggests that employers take three main actions. These include maintaining equitable practices, offering flexible work arrangements, and ensuring competitive pay.

By doing so, employers can foster an environment that supports women's careers while allowing them to manage their caregiving responsibilities effectively.

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