“She-cession” creates imperative for caregiver benefits 

During the first half of 2025, we saw thousands of working American mothers with children under the age of 5 leave the work force. Labor force participation rates for this demographic has hit the lowest level in three years. What’s driving this “she-cession”? As many employers implemented return to office mandates this year and workers scrambled to find full-time and occasional care for children, school-agers, and aging loved ones, they encountered a market with caregiver shortages and sharply rising costs. For some, anyway, these challenges could not surmounted.

Almost half (47%) of US employees are caregivers — and the majority are women. More than half (53%) of caregivers say they are concerned about obtaining affordable, quality childcare or eldercare. For those in the workforce, caregiving impacts presenteeism and absenteeism. Caregiving does not exist in a silo — caregivers often have greater mental health issues and physical health issues than non-caregivers and may need different or additional resources.

The growing number of employees in the sandwich generation face a double whammy — caring for children and aging loved ones at the same time. This group faces even greater demand on their time, higher levels of stress, and more financial pressure.

What can employers do to support caregivers?

To end today’s “she-cession,” caregiving benefits need to move from a ‘nice to have’ benefit to a must-have. It’s important to think holistically about how to best support employees in caregiver roles. Caregiver benefits encompass a range of services and financial resources, including backup care, onsite support, concierge support, childcare assistance, dependent care savings accounts and lifestyle spending accounts, aimed at assisting individuals in managing their caregiving responsibilities while maintaining a healthy work-life balance. These benefits are designed to keep individuals in the workforce, reduce absenteeism and give caregivers the peace of mind to be present at work.

Childcare resources. Many employers have already taken some steps to provide support for employees caring for children. Mercer’s Survey on Health and Benefits Strategies for 2026 found that 54% of all large employers, and 65% of those with 5,000 or more employees, offer at least one type of caregiver resource (or will in 2026). In some cases, employers implementing return-to-office mandates will couple the new requirement with some type of childcare benefit such as a platform for finding childcare providers, back-up childcare, or childcare center tuition discounts. Caregiver subsidies are offered by 7% of employers, with the median annual amount being $1,500. As childcare costs continue to rise, this financial support can show that an employer cares about their employees’ work and family responsibilities.

Larger employers are exploring onsite childcare feasibility as a way to support full-time care, which can be particularly helpful for employees who are onsite full-time or located in rural areas where access continues to be a challenge. Currently, 12% of employers with 5,000 or more employees provide onsite childcare at one or more locations.

Eldercare resources. Longevity is reshaping many aspects of society. Individuals are living longer, and in turn working longer, while caring for their aging parents. Today, 4 in 10 people are reportedly part of the “sandwich generation” — meaning that a growing number of employees are juggling their careers along with childcare and eldercare responsibilities. For many individuals, caring for an elderly person takes time, energy, and resources away from doing their jobs, and employers are increasingly interested in offering support for this growing segment of their workforce. Well over half of all large employers (58%) offer at least one type of elder care benefit (or will in 2026). These include platforms to help search for elder care; concierge care navigation or expert guide support for complex care situations; and backup care. More than a third offer grief counseling or coaching.

Caregiver support is an equitable benefit that can be especially valuable to less-advantaged segments of the workforce. Where once employers may have been concerned about providing “special treatment” for caregivers, today leading employers see enhanced support for caregivers as key to recruiting and retaining the talent they need.

For employers that may have limited resources to implement new benefits, flexible work arrangements or setting up family employer resource groups can offer a lot of value with minimal investment.

It is important to remember that there is no one-size-fits-all strategy, but with a strong plan, employees will feel seen and supported by their employer and be better able to bring their best selves to work every day.