The cost of a Mom leaving the workforce.
Dear Society,
How might we better support moms, regardless of how they choose to care for their children Monday through Friday from 9am - 5pm?
The decision to take time off work after having a baby is a personal one that many women face. While some may return to work soon after giving birth, others may take a longer break to care for their child. Given the skyrocketing cost of childcare, some women may not feel like they have a choice. According to a report by the Economic Policy Institute, the average annual cost of infant care in the United States is more than $20,000, while the average annual cost of care for a four-year-old is more than $14,000.
Regardless of the decision, it’s important for women society - to understand the real costs of leaving the workforce. Currently, women are penalized, workforces are penalized, and the economy is penalized.
The Cost of Leaving the Workforce
One of the most significant costs of leaving the workforce after having a baby is the loss of income. Even if a woman plans to return to work at some point, taking a break can significantly reduce earnings over time. This is because women who take time off for caregiving often miss out on opportunities for promotion, raises, and other career advancement opportunities.
According to a National Women's Law Center study, women who take time off to care for children lose an average of $467,000 in lifetime earnings. This loss is partly because women who take time off for caregiving are less likely to be promoted or receive raises. A study by McKinsey & Company found that women are 15% less likely than men to be promoted to the next level in their careers after taking time off for caregiving.
The Cost of Returning to Work
The transition can be challenging for women who do decide to return to work after taking time off to care for a child. They may find that their skills are no longer up to date, that they have lost touch with colleagues and professional networks, and that they are no longer viewed as valuable employees. This can make it difficult to find a job or to return to their former position at the same level of responsibility and pay.
In addition, according to a study by the Institute for Women's Policy Research, women who take time off from work to care for children are 39% more likely to experience a permanent reduction in earnings. This reduction can persist for up to 10 years after the birth of a child.
The Cost to the Economy
The cost of mothers leaving the workforce to care for children also significantly impacts the economy. A Center for American Progress study estimated that the cost of mothers leaving the workforce to care for children is $1.3 trillion in lost earnings and productivity. This loss is partly because women who leave the workforce may never fully recover their earning potential and thus contribute less to the economy over their lifetime.
Leaving the workforce after having a baby may be the best decision for a family… and the long-term costs to a woman's career are significant. Women who take time off for caregiving will likely experience a loss of income, reduced career advancement opportunities, and a more difficult transition back to work. In addition, the cost of mothers leaving the workforce significantly impacts the economy.
So I ask you, society, how might we better support Moms, regardless of the decision they make about how to care for their child during 9-5 M-F? Because this… this is not working.
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Hi, I’m Coral.
After having two children and returning to work, I felt completely lost and directionless — my identity had shattered, and I didn't know who I was anymore. Over the years, I picked up the pieces and created a new vision for my life, identity, and purpose.
Now I'm on a mission to help moms and primary caregivers navigate their own journeys, for a more fulfilling and authentic path forward. In addition to supporting individuals, I help organizations implement practices that offer deeply needed support to moms and primary caregivers — because we can’t make these changes alone.
Interested in working together? See how I work with both individuals and organizations for sustainable growth. Schedule a free consultation.
