Childcare Costs Outpace Inflation, Forcing Women Out of Workforce
Daycare prices surged 5.2% year-over-year in September 2025—nearly double the 3% overall inflation rate—according to Bank of America data. The squeeze is pushing mothers to abandon careers, reversing a post-pandemic labor recovery. Families now spend more on childcare than public college tuition or monthly rent in some cases, per Department of Labor and Conference Board reports.
This exodus creates demographic imbalances in labor markets. Unlike previous cycles, retiring baby boomers aren't filling gaps left by caregiving parents. The trend signals structural economic shifts beyond transient inflation pressures.