Recent discussions highlight the struggles of parents juggling child support and rising rent prices in major U.S. cities. Increasing costs related to childcare and elder care are pushing many women out of the workforce, making achieving the American dream feel more difficult than ever.
According to a report from Catalyst, 455,000 women left the labor market from January to August 2025, with rising care costs outpacing wage growth. Many reported tough decisions between income and the high costs of specialized care. In a survey, about 42% said they resigned because of caregiving obligations, while 37% cited rigid work schedules. A smaller group mentioned dissatisfaction with wages or uncertainties in the job market.
Catalyst’s executives warn that unless businesses and governmental bodies invest in long-term care infrastructure, the country might face a significant labor shortage and increased service costs.
Catalyst’s President, Jennifer McCallum, expressed concern during a discussion, noting that many women are leaving various sectors en masse. She pointed out the lack of leaders speaking up about the issue, which could create conditions ripe for a labor market crisis.
McCallum emphasized that women leaving the workforce isn’t a reflection of a lack of ambition or commitment. Rather, it underscores how many jobs still overlook caregiving responsibilities and financial challenges. She stressed the importance of re-evaluating workplace structures to better understand why women are exiting.
A LendingTree study from November 2025 found that in the 100 largest metro areas, the average monthly cost for infant care is more than 25% less than the rent for a two-bedroom apartment. For those with both infants and toddlers, childcare expenses average about 31.5% higher than rent.
Federal data shows a sharp decline in women’s participation in the workforce during the COVID-19 pandemic, with a slow recovery coinciding with pre-pandemic levels. A survey from the U.S. Census Bureau indicates that ongoing childcare challenges still affect labor participation rates.
Some employers and policymakers believe that enhancing workplace flexibility and government-provided childcare might lead to increased operational costs for businesses and taxpayers. Groups like the U.S. Chamber of Commerce have voiced concerns that these changes could exacerbate inflation and labor shortages businesses currently face. However, a Federal Reserve study indicates that labor market conditions remain tight, attributing any increases in labor participation, especially among women, to several factors, including childcare expenses and economic trends.
Childcare costs can soar to an average of $1,996 monthly in areas where the expense greatly exceeds rent.
According to survey responses, 18% of unemployed women struggle to reconcile their salaries with the rising costs of care. Some mentioned that their financial situation no longer adds up due to caregiving responsibilities, inflexible roles, and their current pay rates.
As Sheila Brussel, Catalyst’s research director, articulated, women aren’t choosing to “opt-out”; they are leaving as many jobs fail to accommodate the caregiving responsibilities and financial realities women face. She urges employers aiming to attract and retain female talent to implement substantial policies that facilitate women’s active participation in the workforce.
Data from Catalyst shows a pressing need to adapt workplace structures to better fit women’s realities, especially post-COVID. This includes offering flexible schedules, equitable pay, and pathways that not only allow reentry into work but promote thriving in their roles.
As employers strive to find a balance between flexible work arrangements and operational demands, some have been reducing remote work options in recent times.
