US Department of Labor announces new research that underscores benefits of paid family and medical leave

WASHINGTON - The U.S. Department of Labor today announced the release of new research it commissioned that found a national paid family and medical leave program would reduce poverty across all communities and diminish the poverty gap among workers, especially Black and Hispanic workers who experience some of the highest poverty rates.

The department's Women's Bureaucommissioned the research from the Urban Institute, which includes a report analyzing the potential effect a universal and national paid family and medical leave policy would have on America's workers, a literature review on the impacts of paid leave and a brief on the impact of state paid leave policies on taxes. The research also includes four state-specific reports estimating the costs and benefits of proposed paid family and medical leave policies in Maryland, Michigan, Pennsylvania and Washington.

Only 13 states and the District of Columbia currently have paid family and medical leave programs. As of March 2023, only 27 percent of civilian workers had access to paid family leave through their employer and 41 percent of civilian workers had access to short-term disability insurance through their employer. Among the lowest-wage earners, just 6 percent have access to paid leave through their employers. According to the Urban Institute, the adoption of national paid family and medical leave providing workers up to 12 weeks of paid leave to care for themselves or a loved one, similar to what was proposed in the FAMILY Act, could mean 97 percent of workers are eligible for benefits. Moreover, benefits from a universal, national policy with equitable policy design features - including broad worker coverage, low earnings requirements, progressive wage replacement and other features modeled on recent state programs - would reduce poverty by 16 percent among people in families receiving paid leave benefits.

"The new Urban Institute findings further build the already strong case for paid family and medical leave," said Women's Bureau Deputy Director Gayle Goldin. "This report shows that a comprehensive paid family and medical leave program keeps people out of poverty. It means more people would stay financially stable when they experience health and caregiving needs, and it would help employers recruit and retain workers."

Goldin added, "We know paid leave supports women's labor force participation and increases the gross domestic product. Investing in families works for everyone."

View the new reports and learn more.