Cost of Living Crisis Sends Mums Back to Work

With Australians of all stripes feeling the pinch of inflation, rising rents and interest rates, and general cost of living increases, there comes a moment when new parents look at their finances and see that a single income just won’t cut it.

Maternity leaves across the country are shortening, with many young mothers reportedly returning to work just six months after giving birth – down 50% from the pre-COVID average of a full year.

University of Melbourne Professor of Sociology and Social Policy, Lyn Craig, says a two-income household is becoming the norm in the wake of Australia’s cost of living crisis.

“The women’s workforce participation, even for those with young children, has increased,” Craig says. “It’s changing a pattern that’s been quite settled in Australia for a fairly long time. Before, it was common to have mum at home, especially in that very first year [of a child’s life]. But I think it’s becoming increasingly difficult to maintain that.”

Coupled with rents, interest rates, groceries, and nearly everything else increasing in price, childcare costs have also grown explosively. Averaging out across the country at $122 per child per week, it’s becoming increasingly tough for families to meet every need on only one income.

“The childcare in this country is extraordinarily expensive in world terms,” Craig says. “So far it has largely been uneconomic for women to work more than three days a week due to both childcare costs and the income taxes imposed on secondary income earners.”

“They’re kind of working for nothing,” Craig says. “It’s a cost-benefit analysis. And it’s really difficult working three days or working full-time with a young baby, especially if you’ve got a partner who is also full-time, so considering the trade-off between time with the child and money is important.”

This then shifts the responsibility of care over to grandparents, many of whom are also still in the workforce due to the same cost of living pressures. 

Despite the struggles to coordinate work and family lives, mothers are incredible resources for businesses. If given the opportunity, they can provide unparalleled skills in project coordination, employee management, empathy, relationship-building, and so much more, just from their experience as mothers.