Why women’s labor force participation has stagnated from its post-pandemic peak

Over the past five years, women aged 25 to 54 have been the driving force behind the growth of the country’s working-age population.

However, according to an analysis by the Hamilton Project, post-pandemic growth in women’s labor force participation has stalled in recent months.

It’s a change from January, when 78% of women between the ages of 25 and 54 — the Hamilton Project’s most active age group — were in the workforce, the highest rate of political participation yet.

So why has it gone down? Kristin Rowe-Finkbeiner, CEO of the women’s nonprofit MomsRising, told Scripps News that the end of many pandemic-era programs plays a role.

During the pandemic, there were significant efforts to stimulate families and businesses, from small-business loans to child benefits that allowed people to work more without taking big losses. But many of those policies have been rolled back in the past few months, and Rowe-Finkbeiner said politicians need to work to restore them to get the labor force back to full strength.

“Before the pandemic, our health care infrastructure was hanging by a thread. With the pandemic, it’s completely fallen apart,” Rowe-Finkbeiner told Scripps News. “We desperately needed these policies before the pandemic hit, and the policies that were passed during the pandemic have been proof that these kinds of changes are exactly what our country needs to help our businesses, our economy, and our families thrive.”

Rowe-Finkbeiner said the Hamilton Project report shows the “gains” of pandemic-era programs that benefit the country. He said politicians who voted against expanding them should show that making them permanent would continue those gains.

Rowe-Finkbeiner said this includes paid leave after childbirth and childcare to help women return to high levels of labor force participation.

Currently, child care costs account for 33% of the median household income, making it unaffordable for many families, according to research from the Center for American Progress. And while the Hamilton Project says half of all working mothers of young children rely partly on child care facilities, the Century Foundation predicts that 70,000 child care facilities could close and 3.2 million children could lose care if Congress does not extend pandemic stabilization funds.

“We need to — study after study shows us — build that care infrastructure,” Rowe-Finkbeiner told Scripps News. “We need all of those policies to have a stable workforce and especially to make sure that family costs are lower. So right now we’re seeing these swings in the workforce because some of these policies have come in and out of play, and we need to bring them back into play.”

In terms of future policies, Vice President Kamala Harris, the favorite to be the Democratic presidential nominee, has outlined goals for affordable child care and paid parental leave if she wins the 2024 election. The Republican nominee, former President Donald Trump, did not answer a question about child care costs during his debate with President Biden, but he has previously called for extended paid parental leave.