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U.S. mothers exit workforce as childcare costs hit new report high

May 5, 2026

By AI, Created 9:51 AM UTC, May 20, 2026, /AGP/ – A new Beverly Research index ranks all 50 states and the 250 largest U.S. cities on childcare, and no city topped 80 on the 100-point scale. The report says the childcare crunch is pushing mothers of young children out of work at the fastest pace in more than 40 years while straining family budgets and the broader economy.

Why it matters: - Beverly Research estimates the U.S. is losing $172 billion a year in parent earnings and productivity to a childcare market that the report says is no longer working. - The report links childcare costs and shortages to a sharp drop in workforce participation among mothers of young children, which can reduce household income and labor supply. - The index shows the problem is national, not regional. Every state and every major city in the ranking fell short of top-tier scores.

What happened: - Beverly Research released the 2026 State of Childcare Report on May 5, 2026. - The report scores all 50 states and the 250 largest U.S. cities on a 100-point Childcare Index. - No city scored above 80. - Pearland, Texas, ranked first among cities with a score of 74. - Sunrise Manor, Nevada, ranked last with a score of 14. - North Dakota led the states at 71, the only state in the report’s “Strong” tier. - Nevada scored 23 and Indiana scored 30, placing both in the report’s “Crisis” tier.

The details: - The labor force participation rate for mothers ages 25-44 with children under 5 fell from 69.7% in January 2025 to 66.9% in June 2025. - That 2.8-point decline is the steepest six-month drop in more than 40 years for mothers of young children, based on Census Current Population Survey data analyzed by the University of Kansas Care Board. - U.S. infant center-based care averaged $17,163 a year during the same period. - That cost was about $1,000 more than median annual gross rent and higher than in-state public college tuition in 38 states. - Workers caring for infants earned a median wage of $15.41 an hour. - Beverly Research says 43% of early-educator households now rely on public assistance, at an annual taxpayer cost of $4.7 billion. - The U.S. total fertility rate fell to 1.626 births per woman, the lowest ever recorded. - A 2025 American Family Survey found 71% of Americans say raising children is unaffordable, up 13 points in one year. - The report says the Las Vegas metro area accounted for five of the 10 worst-scoring U.S. cities: Sunrise Manor, Paradise, Las Vegas, North Las Vegas and Spring Valley. - Four of the five most policy-rich states — New York, Massachusetts, New Jersey and Maryland — still landed in the report’s “Strained” tier. - Boston, the most policy-supported large city in the report, scored 43.

Between the lines: - The report suggests policy support alone is not closing the gap if childcare remains expensive and worker pay remains low. - The combination of high family costs and low educator wages points to a market failure that can hurt both parents trying to stay employed and providers trying to keep staff. - The broad spread between top and bottom rankings shows that local supply, affordability and workforce conditions matter as much as statewide policy.

What’s next: - Beverly Research says it plans to refresh the index annually to track changes in state and city scores. - The full report includes all 50 state pages and 250 city rankings, plus a detailed state ranking, at the full methodology and report details. - The index methodology weights Affordability, Supply, Workforce Health, Family Strain and Policy Support into a 0-100 composite score.

The bottom line: - The report paints a picture of childcare as a binding constraint on families and the labor market, with costs, access and staffing problems reinforcing one another.

Disclaimer: This article was produced by AGP Wire with the assistance of artificial intelligence based on original source content and has been refined to improve clarity, structure, and readability. This content is provided on an “as is” basis. While care has been taken in its preparation, it may contain inaccuracies or omissions, and readers should consult the original source and independently verify key information where appropriate. This content is for informational purposes only and does not constitute legal, financial, investment, or other professional advice.

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