Economic trends during the coronavirus pandemic like increased job flexibility, have led to an increase in birthrates in the United States.
Economic factors, not just lockdown-induced forced proximity, played a key role in last year's "baby bump," according to the economists behind a new working paper released earlier this week.
While a recession is typically defined as a prolonged period of economic decline marked by high unemployment, the Covid-19 recession of early 2020 was unlike any other. As a result of the lockdowns, the unemployment rate quickly surged to almost 15% but those job losses were followed by months and months of robust gains.
The 2021 increase in the birth rate followed a sharp drop in 2020. While that decline was initially attributed to behavioral changes spurred by economic uncertainty and job losses caused by the pandemic, it was subsequently attributed to fewer births from mothers born outside the United States, the researchers found.
The pandemic helped to expose the critical role the child care industry serves in bolstering labor market participation. A reduction in care options kept many people from reentering the workforce, compounding some of the job losses of women disproportionately affected by heavy service-sector layoffs and who remained out of the labor force to shoulder care responsibilities.
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