Female Labor Force Participation: Why Care Infrastructure Is the Key to Economic Growth

Female Labor Force Participation: Why Care Infrastructure Is the Key to Economic Growth
Jeffrey Bardzell / Nov, 25 2025 / Demographics and Society

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Women are leaving the workforce in droves-not because they don’t want to work, but because the system no longer lets them do both: work and care. In September 2025, the U.S. female labor force participation rate was 57.4%. That’s up from 56.9% the month before, but still below where it was in March. And for women with young kids? It’s worse. Between January and June 2025, participation among mothers with children under five dropped from 69.7% to 66.9%. For college-educated women, it fell from 70.3% in September 2024 to 67.7% by July 2025. This isn’t a blip. It’s a reversal.

The Hidden Cost of Rigid Offices

The pandemic gave us something unexpected: flexibility. Remote work wasn’t just a stopgap-it became a lifeline for millions of women juggling jobs and caregiving. Then, in late 2024, companies started demanding full-time office returns. And by 2025, the consequences were clear: 212,000 women aged 20 and over left the workforce in just nine months. Meanwhile, 44,000 men joined it. Why the difference? Because caregiving still falls mostly on women. In most households, women handle 65% to 80% of unpaid care work-cooking, cleaning, childcare, elder care. When the office demands you’re there 9-to-5, five days a week, those responsibilities don’t disappear. They just force impossible choices.

Who’s Leaving-and Why

It’s not just mothers. It’s women with college degrees. It’s women in their 30s and 40s-the core of the workforce. The Brookings Institution and The Hamilton Project found that educated, married, and foreign-born women are actually working more than before the pandemic… but only if they can work remotely. Once that option vanished, so did their participation. The data doesn’t lie: flexibility isn’t a perk. It’s infrastructure. Just like roads and broadband, it enables economic activity.

Take the construction industry. Women make up just 11% of workers there-and only 2.8% work in skilled trade roles. That’s not because they aren’t qualified. It’s because the jobs don’t accommodate family life. Long hours, no remote options, physical demands, and a culture that doesn’t welcome women make it nearly impossible to stay. This isn’t an isolated case. Across industries, workplaces that treat flexibility as optional are quietly pushing women out.

Racial Gaps and Educational Divides

Not all women are affected the same. Black women have the highest participation rate at 61%, followed by Hispanic and Asian women at 59%. White women sit at 57%. Why? Because women of color have long been forced into the workforce out of economic necessity. They’re less likely to have a spouse who can fully support the household, so they’ve built strategies to balance work and care-often with less institutional support.

Education matters too. Among women with bachelor’s degrees or higher, 70% are in the labor force. For those without a high school diploma? Only 34%. That gap isn’t about ambition. It’s about access. Higher education often means higher-paying jobs that used to offer flexibility. Now, those jobs are pulling back. And without flexibility, even women with degrees are dropping out.

Split scene showing empty office desks versus a woman working remotely with her child nearby.

What Care Infrastructure Actually Means

When we talk about care infrastructure, we’re not just talking about daycare centers. We’re talking about the entire system that lets people work without collapsing under the weight of unpaid care work. That includes:

  • Subsidized, high-quality childcare that’s affordable and accessible
  • Paid family and medical leave that doesn’t punish your career
  • Eldercare support for aging parents
  • Flexible scheduling-remote work, compressed weeks, staggered hours
  • On-site or near-site care options
Countries like Sweden, Canada, and Germany already have these systems. Their female labor force participation rates are higher than the U.S.’s. Canada sits at 61.3%. Germany at 59.5%. The U.S.? 57.4%. And we’re falling behind. Why? Because we treat care as a private problem, not a public good. We expect families to solve it on their own-while the economy loses out.

The Economic Case Is Unmistakable

Women make up 47% of the U.S. labor force. That’s nearly half the workforce. If we could get women’s participation back to its 1999 peak of 60%, we’d add millions of workers overnight. The Bureau of Labor Statistics estimates 3.2 million prime-age women will join the workforce between 2023 and 2033-if barriers are removed. But right now, we’re moving in reverse.

The cost of inaction is real. Every woman who leaves the workforce means lost wages, lower tax revenue, reduced consumer spending, and fewer innovations. Companies lose talent. Families lose income. The economy loses momentum. Economists like Claudia Goldin have shown that jobs with flexible hours have smaller gender pay gaps. That’s not a coincidence. Flexibility isn’t just good for women-it’s good for productivity, retention, and innovation.

A highway to economic growth blocked by lack of care support, while a better path shines nearby.

Where the U.S. Is Falling Short

The U.S. is the only high-income country without national paid family leave. We have no universal childcare system. We rely on patchwork employer policies that vanish when leadership changes. And now, we’re rolling back the flexibility that kept women in the game. The result? A workforce that’s shrinking just when we need it most.

Look at the numbers: in middle-income countries, female labor force participation drops sharply. In poor and rich countries, it’s higher. The U.S. is stuck in the middle-wealthy enough to afford care infrastructure, but unwilling to build it. We spend billions on defense, infrastructure, and tax cuts. But when it comes to childcare, we call it a “personal responsibility.” That’s not a policy. That’s negligence.

What Needs to Change

There’s no single fix. But here’s what works:

  • Subsidized childcare: Make it affordable. In many states, childcare costs more than rent. That’s not sustainable.
  • Universal paid leave: At least 12 weeks for all parents, paid at 80% of salary. No one should have to choose between a newborn and a paycheck.
  • Flexible work as standard: Not a perk. Not a privilege. A baseline right. Hybrid work isn’t “work from home.” It’s work that respects life.
  • Employer accountability: Companies that demand full-time office return without offering care support should pay a tax or fee-like a pollution tax on social damage.
  • Public investment: The government should fund childcare centers, eldercare hubs, and transportation to care services. Treat care like roads and electricity.
The companies that get this right are already winning. They’re seeing lower turnover, higher morale, and better hiring. They’re not just being “nice.” They’re being smart.

The Future Is Either Inclusive or Stagnant

We’re at a turning point. If we continue treating care as a side issue, we’ll keep losing women from the workforce. That means slower growth, higher inflation, and more pressure on the remaining workers. If we treat care as infrastructure-like bridges and broadband-we unlock growth, innovation, and fairness.

The data is clear. The solution is known. What’s missing is the will. Women aren’t asking for special treatment. They’re asking for the same conditions men have always had: the ability to work without sacrificing their families. That’s not radical. It’s basic.

Why is female labor force participation declining in the U.S.?

Female labor force participation is declining because rigid workplace policies-especially the return to full-time office work-have removed the flexibility women need to manage caregiving. Between January and June 2025, participation among mothers with children under five dropped from 69.7% to 66.9%. The loss of remote work options, combined with no national paid leave or affordable childcare, has forced many women out of the workforce.

How does childcare access affect women’s employment?

Childcare costs in the U.S. often exceed rent in many states, making it financially impossible for many women to work. Without affordable, reliable childcare, women-especially mothers-are forced to quit jobs or reduce hours. Countries with subsidized childcare, like Sweden and Canada, have significantly higher female labor force participation rates.

Why are college-educated women leaving the workforce?

College-educated women were the biggest beneficiaries of remote work during the pandemic. But as companies mandated office returns, their participation dropped sharply-from 70.3% in September 2024 to 67.7% by July 2025. These women often hold high-demand jobs that previously offered flexibility. When that flexibility vanished, so did their ability to balance career and care.

Is the U.S. falling behind other countries in female workforce participation?

Yes. As of 2024, the U.S. female labor force participation rate was around 57-58%, below Canada’s 61.3% and Germany’s 59.5%. These countries have universal childcare, paid parental leave, and flexible work norms. The U.S. lacks all three, which directly impacts women’s ability to stay employed.

What’s the economic impact of low female labor force participation?

If U.S. female labor force participation returned to its 1999 peak of 60%, it would add millions of workers to the economy. The Bureau of Labor Statistics projects 3.2 million prime-age women could enter the workforce by 2033-if barriers are removed. Losing women from the workforce means lost wages, lower tax revenue, reduced consumer spending, and slower economic growth.