Core Insights - The rising cost of childcare is leading many mothers to leave the workforce to become full-time caregivers, with daycare prices increasing by 5.2% in September 2025 compared to the previous year, significantly outpacing overall inflation of 3% [1][6] - For the first time since 2021, there has been an increase in the number of women citing family responsibilities as the reason for not participating in the labor force, indicating a trend where childcare costs are becoming unsustainable for many families [2][5] - The average cost of childcare has surpassed the average annual tuition and fees at a four-year public college by nearly $1,800, highlighting the financial burden on families [2] Industry Impact - The trend of parents, particularly mothers, leaving the labor market to care for children is creating gaps in the workforce that are not being filled by older generations, potentially impacting future economic growth and business competition [3][4] - Women's participation in the labor market has declined, contrasting with the increasing participation of men, which may lead to long-term demographic and economic challenges [5] - Approximately 70% of mothers with children aged six and under who are not seeking employment reported being unable to work due to childcare arrangements or family responsibilities, indicating a significant barrier to workforce re-entry [5]