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Cost of Childcare Increasingly Weighs on Labor Force Engagement

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Abstract

Problems attaining childcare have weighed on workers’ engagement in the labor force for some time. A few years ago, pandemic disruptions were the primary culprit in the lower consumption of childcare services. Now, the rising cost of childcare may be to blame. As wage growth moderates, higher childcare costs could place added pressure on households and cause some workers to at least partially disengage from the workforce.

Suggested Citation

  • John McCoy, 2024. "Cost of Childcare Increasingly Weighs on Labor Force Engagement," Economic Bulletin, Federal Reserve Bank of Kansas City, pages 1-4, October.
    • Handle: RePEc:fip:fedkeb:98990
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