By Blossom Ukoha
According to the International Labour Organization (ILO), women perform 76.2 per cent of unpaid care work globally and spend 3.2 times as much time on it as men. This unequal burden has significant consequences for women’s economic participation, earnings and career progression. While women’s economic empowerment is often discussed in terms of education, employment opportunities, entrepreneurship and access to finance, childcare remains a critical part of the equation. Without reliable, affordable care, many women struggle to enter the workforce, sustain businesses, pursue promotions or earn incomes that reflect their abilities.
The Invisible Cost of Unpaid Care
The scale of the challenge is substantial. The ILO estimated in 2024 that approximately 708 million women worldwide were outside the labour force because of unpaid care responsibilities, compared with around 40 million men.
These figures reveal a structural problem: women’s time is essential to families and communities, yet much of their contribution remains unpaid and is often excluded from conventional measures of economic productivity.
When childcare responsibilities fall disproportionately on women, the effects extend beyond the home. A mother may decline a promotion, reduce her working hours, abandon a business expansion or leave employment entirely. Others turn to informal work because it offers greater flexibility, even when it provides lower earnings, fewer protections and limited opportunities for advancement.
Childcare is therefore not simply a private family concern. It is an economic issue that influences women’s employment, productivity, financial independence and long-term career progression.
What Happens When Childcare Becomes Accessible?
Evidence from several countries demonstrates that affordable childcare can improve women’s economic opportunities.
A review by the Abdul Latif Jameel Poverty Action Lab (J-PAL), examining nine randomised controlled trials across eight low- and middle-income countries, found that childcare increased women’s employment in five of the studies, with effects varying across settings.
In Kenya, free childcare vouchers for children aged one to three increased mothers’ probability of employment by 8.5 percentage points. In Chile, free after-school care increased the likelihood that mothers would work for at least one month during the year by 3.4 percentage points.
In Uganda, full-time childcare subsidies increased women’s business revenues by an average of 47 per cent, with much of the effect driven by single mothers. These findings suggest that childcare can help women devote more time and attention to income-generating activities.
However, childcare does not automatically produce the same results everywhere. Its effectiveness depends on the availability of jobs, social expectations, affordability, safety and whether families trust the quality of care provided. When these conditions are addressed, childcare can become a practical route to greater economic participation rather than another expense for households to manage.
The Challenge for Women Entrepreneurs
For women entrepreneurs, the childcare gap can affect both business growth and profitability. A mother who must care for a young child while serving customers, managing stock or meeting clients may struggle to concentrate fully on her business.
She may be unable to attend training, pursue contracts, travel for business or extend her operating hours. Even when she remains economically active, her business may not reach its full potential.
Accessible childcare can help women move from survival-oriented enterprises towards more productive and sustainable businesses. It can also make it easier to accept contracts with fixed schedules, develop professional networks and invest time in planning and expansion.
This is particularly important in economies where many women operate small businesses in markets, homes and informal settings. Flexible work may provide a way to earn an income, but flexibility should not become a permanent substitute for access to better-paying opportunities.
Childcare also creates employment in its own right. Expanding early childhood education and care services can generate jobs for caregivers, educators, administrators and other professionals. With appropriate training, fair wages and safe working conditions, the care sector can become an important source of formal employment.
The Wider Economic Cost of Inadequate Childcare
The consequences of insufficient childcare extend beyond individual families. Employers lose experienced workers, businesses struggle to retain talent, and economies forgo income, productivity and tax revenue when parents cannot participate fully in paid work.
In the United States, an analysis by ReadyNation estimated that inadequate childcare for children under five costs the economy approximately US$172 billion annually through lost earnings, productivity and revenue. Although this estimate concerns the US economy, the underlying issue is relevant globally: when parents cannot secure dependable childcare, both households and businesses bear the consequences.
The World Bank has also highlighted affordable, quality childcare as an important investment in human capital, gender equality and women’s economic empowerment. By enabling parents to work while supporting children’s development, childcare can generate benefits for both the present workforce and the next generation.
Nevertheless, childcare must be accompanied by decent employment opportunities and fair workplace policies. Women should not be expected to solve the care gap alone while continuing to face unequal pay, limited promotion opportunities and disproportionate household responsibilities.
Building Childcare Systems That Work for Women
Addressing the childcare gap requires coordinated action from governments, employers, communities and families.
Governments should invest in affordable early childhood education and care, strengthen quality and safety standards, and provide targeted subsidies for low-income households. Services must reflect the realities of working parents, including those employed in informal markets, shift-based jobs and rural communities.
Employers can contribute through childcare support, flexible working arrangements, parental leave and partnerships with quality childcare providers. Such measures can help retain experienced employees and reduce the pressure that forces some women to choose between earning an income and caring for their children.
Communities also have a role to play in developing accessible care services and challenging the assumption that childcare is exclusively a woman’s responsibility. Fathers must be encouraged and supported to share care work, while unpaid caregivers need recognition and practical assistance.
Importantly, childcare must be safe, reliable and developmentally appropriate. Expanding access without maintaining quality can expose children to risks and undermine parents’ confidence in the services available.
A Call to Action: Treat Childcare as Economic Infrastructure
Women’s economic empowerment cannot be achieved through entrepreneurship programmes, financial inclusion initiatives and leadership opportunities alone. These interventions must be supported by the practical conditions that allow women to participate consistently in economic life.
Policymakers should place childcare within national employment, education and economic development strategies. Businesses should assess how care responsibilities affect recruitment, retention and career progression. Investors and development partners should support sustainable childcare models that are affordable for families while providing decent working conditions for care professionals.
Women should not have to sacrifice their ambitions because reliable childcare is beyond their reach. Nor should children’s development depend on whether their parents can afford expensive private services.
Conclusion
Childcare is not a minor domestic concern sitting outside the economy. It is essential infrastructure that supports employment, entrepreneurship, productivity and the development of future generations.
When women have access to affordable, quality childcare, they gain more than time. They gain greater freedom to pursue opportunities, increase their earnings, grow businesses and participate in decisions affecting their economic futures.
Investing in childcare is investing in women’s economic power. An economy that values women’s contributions must also recognise and support the care systems that make those contributions possible.
Comments are closed.