Pro Login

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

Briefs Media Newspaper Logo Market Briefs
Briefs Finance
Published Feb 2, 2026
Share:
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.

Disclosure

Get Market Briefs delivered to your inbox every morning for free!

Homepage V1 opt-in (#63)
No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

February 11, 2026
Why Is RCAT Stock Surging? Red Cat's American Drone Bet

In 2026, the drone economy is starting to take off. […]

Read More
February 9, 2026
ETF vs Mutual Fund vs Index Fund: Which One Is Right For You?

If you're looking to start investing but don't want to […]

Read More
February 8, 2026
What Are Stock Futures? A Beginner's Guide To Understanding Futures Contracts

If you've ever checked the market before opening bell and […]

Read More
February 8, 2026
Certificate of Deposits: Are CDs A Good Investment? What Investors Need To Know

What Is a CD (Certificate of Deposit)? A certificate of […]

Read More
February 8, 2026
ABAT Stock: Will American Battery Technology Solve America’s Lithium Problem?

Critical minerals have been a hot topic over the past […]

Read More
February 7, 2026
Is Copper A Good Investment? What Most Investors Are Missing Right Now

Since late July 2025, the price of copper has jumped […]

Read More
February 6, 2026
Bull Market vs Bear Market: What Investors Need to Know

Between January and October 2022, markets were in turmoil because […]

Read More
February 6, 2026
What Is a Moat? Warren Buffett’s Favorite Stock Valuation Metric

There are 195 countries in the world - most have […]

Read More
February 5, 2026
What Does a Negative P/E Ratio Mean? A Simple Guide for Investors

Many companies have revenue - which is money generated usually […]

Read More
February 3, 2026
NU Stock: Why This Neobank Is Becoming a Major Player

While U.S. neobanks like Chime and SoFi grab headlines, Nu […]

Read More
1 2 3 9
Share via
Copy link