Current State of Women’s Workforce Participation

As of February 2025, women in the United States participate in the workforce at a rate of 57.5%. This reflects a slight decline from 58.0% five years earlier, in February 2020. While discussions around inflation, infrastructure, and interest rates dominate economic conversations, a critical issue—namely, the steady decline of working mothers in the workforce—has been largely overlooked.

The Economic Fallout of Reduced Participation

Cheryl Sandberg has emphasized the economic benefits of fully integrating women into the workforce, suggesting that aligning US women’s participation rates with those of their counterparts in nations like Canada, France, and Germany could result in 7 million additional women entering the labor market, potentially driving a GDP increase of 4.2%. However, the ongoing departure of mothers from their careers threatens this opportunity, jeopardizing future economic growth, family mobility, and national competitiveness.

The Lasting Effects of the COVID-19 Pandemic

The onset of the COVID-19 pandemic in early 2020 significantly affected women’s employment, with many mothers exiting the workforce due to increased caregiving responsibilities, school closures, and a collapse in childcare availability. The U.S. Bureau of Labor Statistics noted that a disproportionate number of unemployed individuals during this period were mothers.

Since then, numerous mothers have struggled to return to full-time roles. Many transitioned to part-time positions or ventured into entrepreneurship, while a sizable number remained as unpaid caregivers, underscoring unresolved structural issues in the labor market, including a lack of affordable childcare and limited workplace flexibility.

The Impact on Medium-Sized Cities

While large metropolitan areas often receive significant media attention, the economic consequences of the declining presence of working mothers are starkly evident in medium-sized cities like Greensboro, North Carolina, and Chattanooga, Tennessee. These communities depend heavily on each worker and taxpayer to maintain their economic stability.

The exodus of mothers from the workforce in these regions results in more than just reduced employment; it represents a loss of future homeowners, entrepreneurs, and leaders who contribute to the financial health of their communities. As the workforce shrinks, local economies contract, tax revenues decline, and demand for goods and services dwindles, further exacerbating the situation and harming community development.

Challenges in Key Sectors

Industries traditionally staffed by women—such as healthcare, education, and childcare—are particularly burdened. Hospitals are urgently seeking to fill nursing and managerial roles, while educational institutions face increased turnover, leading to larger class sizes and burnout among staff.

The childcare sector has been hit hard, with many facilities closing or reducing hours due to decreased enrollment and staffing shortages. This exacerbates the existing childcare crisis and creates a cycle that makes it even more difficult for mothers to re-enter the workforce.

A Collective Economic Issue

The decline in workforce participation among mothers is not merely a gender issue; it is a pressing economic crisis that requires immediate attention.

Current data indicate a stagnation in the U.S. labor market, not because women lack the desire to work but due to unsustainable conditions that inhibit their participation. The unfolding ramifications threaten to become increasingly severe if unaddressed.

Consequences of Inaction

If the U.S. continues to ignore the significant reduction in working mothers, the nation risks losing trillions in potential GDP growth and jeopardizing the economic backbone of communities across the country, starting with medium-sized cities. These towns may become cautionary tales of what occurs when the economic framework fails to support its contributors.

There is a clear path forward: the U.S. can choose to invest in policies that foster an inclusive workforce, such as affordable childcare, flexible working arrangements, paid family leave, and pathways for mothers to reintegrate into their professional roles. Alternatively, failing to act will likely lead to continued economic stagnation.

The future of productivity, equity, and national prosperity hinges on recognizing and valuing the contributions of mothers in the workforce as vital to the overall economy.