Are we still in a "shecession"?

Nearly five years after the outbreak of the COVID-19 pandemic, women’s employment in the US has officially surpassed pre-pandemic numbers. This supposedly marks a total recovery from the “shecession,” when 2.5-3 million women lost or left their jobs.  According to the Institute for Women’s Policy Research (IWPR), the number of employed adult women increased by 2.4 million, women have increased their presence in male-dominated fields, and participation rates for working mothers in the labor force have stabilized. By these accounts, it would appear that the US has made great strides in accommodating the needs of working women and mothers in the US. Would the 455,000 women who left the workforce between January and August 2025 say the same?

Of the half-million women who left the workforce last year, with Black women making up an overwhelming majority, 42% of them cited caregiving responsibilities and the rising cost of childcare as the reason. This isn’t surprising since childcare costs have skyrocketed; childcare is more expensive than public college tuition for over half of the country, and is a bigger expense than rent in at least 17 states. Although it has been found that working fathers have taken up more unpaid childcare labor in the past few years, women still disproportionately shoulder the burden of caregiving and thus are forced to leave the workforce.

Among working mothers, women of color were disproportionately affected in those six months, and most of them did not have the choice to continue to work: 53% of marginalized women reported that they were laid off.

There were several factors at play in this mass exodus. Working mothers and caregivers were able to return to work in the first place because of the flexible accommodations that many companies offered during the pandemic. With the majority of companies returning to in-person work requirements, caregivers who reorganized their lives around remote working conditions are being left in the dust. The rollback of DEI initiatives from the current US administration is forcing women of color out of their livelihoods. Pink-collar workers continue to be underpaid, and those who work in childcare are more than twice as likely to live in poverty as those in other fields. Without equitable opportunities, workplace flexibility, and adequate pay for women, childcare becomes essential but impossible to obtain.

Working women and caregivers across the country have already highlighted many solutions that would drastically improve their working conditions. Reverting to COVID-era remote work policies and flexible scheduling is one. The US could offer substantial, comprehensive family leave that would surely improve our global ranking for family-friendly workplace policies (since we have been placed dead last since 2019). So far, New Mexico has been the only state to implement real change for working mothers and caregivers by offering free, universal childcare back in November of last year. Families are now estimated to save $14,000 a year per child thanks to this policy change. But the corporate world maintains its painstakingly slow approach to improving working conditions for caregivers. Why aren’t companies rushing to make and maintain positive working conditions for working mothers and caregivers?

Reimagining Work & Success

We know why corporations haven’t made much headway in accommodating working mothers. Investors like to see their money used efficiently, and that means fewer employees and more layoffs just to see yearly reports go positive. There is still an unconscious bias towards women and working mothers who require flexible schedules; employers often do not view them as reliable or worthwhile investments because they take more time off. But as the US finds itself in the midst of economic uncertainty across the table, it may be time for a complete shift in corporate priorities.

A radical restructuring is required from employers and policymakers to keep the interests of their employees at the forefront. Layoffs and cut costs may pad the pockets of investors, but they are detrimental to companies in other ways: high turnover means more money spent on recruiting, hiring, and training new talent, and often kills corporate reputation. Employees who feel undervalued and replaceable are stressed and unmotivated to perform well. We have concrete evidence that happy employees are more productive, and among ideals like purposeful company missions and frequent employee recognition, flexibility and autonomy prove to be strong pillars in the foundation of happy companies.

What would happen if American companies used the well-being of their employees and maintaining a positive company culture as main indicators of success? One could imagine that working moms and caregivers would be given the grace to integrate their career aspirations with a stable home life. Perhaps we would see a more balanced distribution of caregiving responsibilities between genders, with both parents able and encouraged to spend more quality time with their families. But one thing is certain: the interests of women, working moms, and caregivers must be considered if we want to see a stronger economy and improved conditions across the country. Companies and employers must investigate their own biases against caregivers, measure them up against their priorities, and imagine their business aspirations from more than an investor’s point of view.