Ylan Mui: The mom-less recovery

Kelly Evans's afternoon guest commentary & top market stories

VIEW IN BROWSER | SUBSCRIBE WED, MAR 03, 2021 YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC AS OF WED, MAR 03, 2021 • 11:11 ET DJIA 31481.20 +0.29% +89.68 S&P 500 3860.22 -0.26% -10.07 NASDAQ 13253.38 -0.79% -105.40   EDITOR'S NOTE This week's newsletter is brought to you by CNBC's Washington reporter and supermom of three, Ylan Mui.   I normally listen to Federal Reserve Chair Jerome Powell for news on monetary policy. I never imagined he'd be dropping truth bombs about motherhood.   It happened during a hearing last week on Capitol Hill, as Rep. Cindy Axne (D-Iowa) asked him why so many women have left the labor force during the pandemic.   "With the closure of many schools, parents are staying home," Powell replied. "And that burden has fallen more on mothers than it has on fathers."   There it was. The most powerful man in economics acknowledging what every woman already implicitly understands: There is a labor disparity at home. It is driving a labor disparity in the workforce. And this is a real problem -- not some domestic squabble over who does the dishes, but a serious drag on the economic recovery.   And Powell wasn't done.   "Many other countries, our peers, our competitors, advanced economy democracies, have a more built-up function for childcare," he continued. "And they wind up having substantially higher labor force participation among women."   According to the National Women's Law Center, roughly 2.3 million women have left the workforce since the start of the pandemic. That's more than half the total decline in participation, even though women make up less than half of the overall workforce. The participation rate now stands at 55.7 percent -- the lowest level in 33 years.   In fact, the lack of childcare is now one of the most common reasons for not working (in a paid capacity, at least). Census data shows it is eclipsed only by actually getting laid off or furloughed, according to an analysis by Third Way, a left-leaning think tank. The situation is especially grim In San Francisco: The number of workers who left the labor force to care for their children has doubled during the pandemic.   "We used to lead the world in female labor force participation a quarter century ago, and we no longer do. And it may just be those policies have put us behind," Powell said.   There are many policies that can put us back in front. Paid family leave -- with equal time for women and men, to care for both children and adult dependents -- is the low-hanging fruit. We can embrace the flexible work arrangements that the pandemic has revealed are necessities, not luxuries. Both Republicans and Democrats want to send more aid to child care centers to ensure they can survive until we're ready to return.   So I'm hopeful that the nation has learned during these difficult times that parenting is essential work, too. Preach on, Powell.   Note from Kelly: Remember all the talk in past years about a "jobless recovery"? That's what I was going for with the title and subject line here; a "mom-less" recovery this time around. Anyhow, a big thanks to Ylan for her excellent piece! Kelly Evans Twitter: @KellyCNBC Instagram: @realkellyevans KEY STORIES  Biden backs lower income cap for direct payments in $1.9 trillion relief package Under the structure, stimulus checks would end at $80,000 in income for individuals and $160,000 for joint filers. Stocks making the biggest moves in the premarket: Lyft, Las Vegas Sands, Wendy's & more The stocks making the biggest moves in premarket trading include Lyft, Las Vegas Sands, Wendy's, and more. Private payrolls growth well short of expectations for February, ADP says Companies added just 117,000 positions for the month, well below the 225,000 forecast from economists surveyed by Dow Jones. Mortgage application demand stalls as interest rates surge to highest level since July Mortgage interest rates rose at the fastest pace last week in over a year, throwing cold water on already cooling demand. Shares of Rocket Companies are dropping after a 70% irrational pop in the heavily shorted name Rocket is one of the most heavily shorted names by hedge funds, with nearly 40% of its available shares sold short. Crafts retailer Michaels will go private in $3.3 billion deal with Apollo Global Apollo will acquire all outstanding Michaels stock for $22 per share, or a 47% premium to the arts and crafts retailer's closing price on Friday. Timing your income tax filing just right could mean a bigger stimulus check For some Americans, filing 2020 taxes before or after the latest federal Covid relief package is passed could change the size of their stimulus check. Leon Cooperman calls Warren's wealth tax 'foolish,' says people would hide money to avoid it "If the wealth tax passes, go out and buy yourself some gold because people are going to rush to find ways of hiding their wealth," the billionaire told CNBC. Rocket Mortgage founder Dan Gilbert made $30 billion on paper after stock's surge The spike in Rocket Companies' stock price created a massive one-day gain for the company's largest shareholder. Google says it won't use new ways of tracking you as it phases out browser cookies for ads Google is clarifying its plans for a post-tracking cookie world, saying in a new blog post it won't use other ways to "track" users around the internet.     IN CASE YOU MISSED IT It's a fool's game to predict an end to the bull market every time we make a new low in rates, says Scott Minerd Scott Minerd on rate increases and inflation Could rising commodity prices boost M&A?   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS