Ylan Mui: The mom-less recovery

WED, MAR 03, 2021

YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC

AS OF WED, MAR 03, 2021 • 11:11 ET

DJIA		31481.20
		+0.29%	+89.68

S&P 500		3860.22
		-0.26%	-10.07

NASDAQ		13253.38
		-0.79%	-105.40

EDITOR'S NOTE

This week's newsletter is brought to you by CNBC's Washington reporter and supermom of three, Ylan Mui.

I normally listen to Federal Reserve Chair Jerome Powell for news on monetary policy. I never imagined he'd be dropping truth bombs about motherhood.

It happened during a hearing last week on Capitol Hill, as Rep. Cindy Axne (D-Iowa) asked him why so many women have left the labor force during the pandemic.

"With the closure of many schools, parents are staying home," Powell replied. "And that burden has fallen more on mothers than it has on fathers."

There it was. The most powerful man in economics acknowledging what every woman already implicitly understands: There is a labor disparity at home. It is driving a labor disparity in the workforce. And this is a real problem -- not some domestic squabble over who does the dishes, but a serious drag on the economic recovery.

And Powell wasn't done.

"Many other countries, our peers, our competitors, advanced economy democracies, have a more built-up function for childcare," he continued. "And they wind up having substantially higher labor force participation among women."

According to the National Women's Law Center, roughly 2.3 million women have left the workforce since the start of the pandemic. That's more than half the total decline in participation, even though women make up less than half of the overall workforce. The participation rate now stands at 55.7 percent -- the lowest level in 33 years.

In fact, the lack of childcare is now one of the most common reasons for not working (in a paid capacity, at least). Census data shows it is eclipsed only by actually getting laid off or furloughed, according to an analysis by Third Way, a left-leaning think tank. The situation is especially grim In San Francisco: The number of workers who left the labor force to care for their children has doubled during the pandemic.

"We used to lead the world in female labor force participation a quarter century ago, and we no longer do. And it may just be those policies have put us behind," Powell said.

There are many policies that can put us back in front. Paid family leave -- with equal time for women and men, to care for both children and adult dependents -- is the low-hanging fruit. We can embrace the flexible work arrangements that the pandemic has revealed are necessities, not luxuries. Both Republicans and Democrats want to send more aid to child care centers to ensure they can survive until we're ready to return.

So I'm hopeful that the nation has learned during these difficult times that parenting is essential work, too. Preach on, Powell.

Note from Kelly: Remember all the talk in past years about a "jobless recovery"? That's what I was going for with the title and subject line here; a "mom-less" recovery this time around. Anyhow, a big thanks to Ylan for her excellent piece!

Kelly Evans
Twitter: @KellyCNBC

Instagram: @realkellyevans

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