Mothers of young children re-entering the labor force

Excerpted from:
Mothers of young children re-entering the labor force
Matthew Nestler, PhD, Senior Economist at KPMG
January 27, 2026

After two years of retreat, mothers of young children are returning to the labor force, but the path back looks different for those with a bachelor’s degree or higher compared to those without one.

• The past two years were a particularly difficult labor market for mothers of young children. Many left paid employment and the labor force entirely, while a smaller share shifted into unemployment. This pattern differs from the last two downturns—in 2008-09 and 2020—when mothers of young children were more likely to become unemployed initially rather than exit the labor force.
• By late 2025, labor force participation among the group began to edge higher, though for different reasons across education levels.
• Among mothers with a bachelor’s degree or higher whose youngest child is under 5, both unemployment and paid employment rose, lifting labor force participation. Gains in full-time work more than offset declines in part-time.
• Among mothers without a bachelor’s degree whose youngest child is under 5, higher unemployment drove the increase in labor force participation. Paid employment slightly declined. A drop in part-time work outweighed a modest rise in full-time.

Untapped talent is re-entering the labor force despite persistent childcare barriers and return-to-office (RTO) rules. With demographic headwinds and limited immigration constraining labor supply, employers that offer part-time options, predictable and flexible schedules, and childcare benefits will be best positioned to attract and retain these returning workers.

You can read Dr. Nestler’s full article, posted on LinkedIn, here:

https://www.linkedin.com/pulse/mothers-young-children-re-entering-labor-force-matthew-nestler-phd-sckbc/?trackingId=Kx7UwqO3RbivIlCCufKTiA%3D%3D

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