KPMG research reveals that return-to-office mandates coupled with soaring childcare costs are forcing young mothers to leave their jobs.

For the United States For mothers, 2025 signals a critical juncture in the workplace, as more stringent directives for office returns, coupled with increasing expenses for childcare, converge to Ignite a mass departure of mothers who work, as detailed in a new KPMG report study called “The Great Exit.”

From January to June 2025, the labor force participation rate for mothers with children younger than five years old dropped by almost three percentage points. At the same time that Fortune 500 companies nearly doubled their requirements for in‑office, full‑time work. KPMG's research indicates that inflexible schedules are forcing mothers, particularly those with college degrees and very young children, out of the workforce. Within a limited childcare landscape.

According to KPMG, it's straightforward: "Women with young children have been exiting the workforce since late last year."

What the report says

• Childcare labor shortages, coupled with increased demand, are driving up prices and limiting availability. Consequently, mothers are leaving or scaling back Mothers have spent hours more than fathers, with the sharpest drops seen in college-educated mothers of very young children since their peak in 2023.
• Childcare employment experienced no growth once federal stabilization funding concluded in 2023, resulting in a shortfall of approximately 100,000 workers compared to projected levels. Had support continued, leading to increased prices and waitlists that disrupt parental employment.
  • KPMG has observed that the previously described "childcare cliff" has transformed into more of a plateau. However, this plateau indicates a sector experiencing significant difficulties.
• Mandates to return to the office exacerbate these strains; when childcare plans are inflexible with the added burden of commuting and in-office attendance, individuals Caregivers—typically mothers—reduce their work hours or stop working altogether, leading to decreased household earnings and businesses losing seasoned employees. Skill

Key numbers

• In August 2025, the labor force participation rate for college-educated mothers with very young children declined to approximately 77%, down from close to 80% in 2023. Meanwhile, fathers In similar groups, work attachment among parents with young children increased, leading to wider gender disparities.
• Childcare expenses are escalating at about double the rate of general inflation, a trend driven by limited supply and escalating operational expenses, which Care providers transfer to families, consequently increasing the pressure on mothers to leave.
  • KPMG notes that the childcare crisis, while not a recent development, has significantly worsened. As parents re-entered the workforce and sought increased childcare solutions, costs began to climb once more.
• A significant observation: Labor force participation has seen its most substantial drop among women who hold a bachelor's degree or higher and have young children. The year 2023.
  

Why it matters

• Family finances suffer as mothers' reduced participation in the workforce impacts their income and career advancement, leading to diminished long-term wealth building and The gender pay gap creates significant financial challenges for families, especially as the cost of care escalates, necessitating tough decisions about household budgets.
• Employers suffer from the departure of skilled, seasoned staff, leading to increased expenses for recruitment and onboarding, while overall economic expansion moderates due to a shrinking workforce. Key areas vital for output and succession planning.
• Policy uncertainty: The report’s findings are emerging amidst a period of significant policy changes that have a greater impact on industries with a large female workforce, which Childcare availability and cost issues could worsen exit trends.

Broader context

• The number of Fortune 500 companies requiring full-time in-office work increased to approximately 24% in the second quarter of 2025, up from 13% at the close of 2024. As mandates became stricter, motherly participation saw a decline, diminishing the flexibility that had enabled many mothers to remain employed throughout and following the pandemic. The proportion of young children experiencing this decline is projected to decrease from approximately 69.7% to 66.9% by mid‑2025, a trend mirroring KPMG's recorded downturns affecting mothers with college degrees and very young children. By 2025.
• When mothers experience a loss of flexibility due to soaring childcare costs and limited availability, they are often compelled to reduce their working hours. Departures.

What to watch for next

• The childcare sector relies significantly on immigrant labor, with roughly 20% of its national workforce comprised of immigrants. Therefore, stricter immigration regulations have the potential to exacerbate existing challenges. Restricting staff availability, worsening deficits and increasing costs in states with elevated expenses.
• Without measures like increased flexibility, backup childcare, and on‑site facilities, employers may resort to more rigid in‑office policies, leading to greater disruptions for parents. Requirements often lead to a larger number of mothers leaving their jobs or reducing their working hours.
• State initiatives such as increased funding, tax incentives, and wage assistance, alongside federal decisions concerning childcare, employment, and immigration, will Whether the current plateau moves toward recovery or worsens into a prolonged capacity deficit.

For this story, Fortune generative AI was utilized for a preliminary draft, with an editor subsequently confirming the information's accuracy prior to publication.