Nearly 3 million American women left the labor force during the pandemic. One of the many challenges faced by women was the pressure to juggle both child care and their careers. The difficulties were magnified when public schools in states, such as New York and New Jersey, closed down and sent kids home. Daycare centers either closed, charged exorbitant fees or couldn’t find enough workers.
As a recruiter, I’ve noticed that when a person leaves the job market for an extended period of time, it’s hard to return. Oftentimes, when or if they get back on track, the new role may be substantially lower than the one they previously held.
As a nation, we have been constantly calling for a more modernized and appropriate family and sick care universal leave plan. Just as the outbreak created the widely adopted new acceptance of remote, hybrid and digital-nomad workstyles, the usage of Zoom and other online video communication tools and platforms, instead of having to travel, it may be the right time to enact new family leave laws.
America is the only country among 41 nations that does not mandate any paid leave for new parents, according to data compiled by the Organization for Economic Cooperation and Development (OECD). The least amount of paid maternity leave for most member countries is around 12 weeks. The average is about 20 weeks and the United States has none. As a comparison, two developed nations, Japan and Norway, provide parents with more than 52 weeks of paid compensated time off.
We might see some changes. There is currently legislation moving through Congress that would make 12 weeks of paid family and sick leave available to most workers. The Build Back Better Act, which is part of the Democrats’ $3.5 trillion infrastructure plan, includes 12 weeks of universal paid family and medical leave. This program gives workers the time off to care for newborn children or deal with a medical emergency. The benefits would start in or about 2023, Business Insider reported.
According to CNBC, “Nearly all workers qualify for paid leave, as long as they’ve earned some wages in the last six months, said Kathleen Romig, a senior policy analyst at the Center on Budget and Policy Priorities.” The average worker would receive around 60% of their pay replaced for up to 12 weeks each year. There is a cap of $4,000 a month. Low-wage workers would see about 80% of their income while taking time off. Part-time and self-employed people should qualify as well.
Advocates of the plan say that having appropriate childcare choices will increase worker productivity, which in turn, adds value to the company. One study highlighted the economic losses associated with not having childcare leave. It found a $57 billion annual loss of potential earnings.
High-quality and affordable child care would increase the workforce participation rate. Whereas, the lack of childcare options makes it logistically difficult for parents to work outside the home and puts a strain on mothers with jobs and careers. Reports from parents indicate that they have worked fewer hours, as they needed to tend to family obligations. Around 86% of primary caregivers point to child care matters as limiting their availability for work.
With widespread availability of child care, dual-parent households would increase their income level. For those who couldn’t enter the job market, as they didn’t have a way to juggle both jobs and childrearing, they could now start searching.
As more women entered the labor force over the last 40 years and earned paychecks, they have driven 91% of the income gains experienced by middle-class families. When families have higher incomes, they can better save for retirement. The extra money and spending helps stimulate the economy and promotes growth.
Investments in child care would make America more competitive. The United States now lags behind other developed countries in investments in child care and early education—one major reason its labor force participation is declining, while those of its competitors rise. Investments in child care can help reverse that trend, helping American businesses win the 21st century.
Source: Forbes
