Paid family leave benefits Ohio economy as well as families

Nov 1, 2024 | News

^ Welcome $ News $ Paid family leave benefits Ohio economy as well as families

A mother with her newborn. (Thanasis Zovoilis/Getty Images.)

An Ohio child advocacy group is making a push for paid family leave, one of many that have been made over the years as child care costs continue to rise.

Groundwork Ohio used its newest report to encourage implementation of paid leave policies in a state where the vast majority of residents have jobs that don’t offer paid family leave.

“The benefits are vast, including improved health outcomes for mothers and babies, reduced infant mortality rates and diminished emotional and financial stress,” according to Lynne Gutierrez, president and CEO of Groundwork Ohio.

One of the other types of leave that exists in the U.S. is the federal Family and Medical Leave Act (FMLA), which provides leave that keeps individuals from losing their jobs for specific family and medical reasons, but that leave is unpaid. Groundwork Ohio’s analysis estimated 8.4 million people, about 5.3% of eligible workers – those in companies with 50 employees or more who have worked for at least a year –  use FMLA annually, but also found that FMLA “has significant limitations forcing over 40% of the total U.S. workforce to the fringes of a benefit made accessible due to legal technicalities.”

Under FMLA, “family” is categorized as spouses, children and parents, but excludes “modern families and LGBTQ+ populations,” the study stated.

To fill the gaps in FMLA coverage, the report argued support for paid family leave should be taken up by state legislatures to not only support families in better ways, but also to bring the U.S. up to par with other countries. Currently, the U.S. is one of only six countries globally without national paid maternity leave, according to Groundwork, an “abysmally far cry from the average 29 weeks of paid maternity leave sanctified in most other countries.”

“In the absence of a functioning paid leave insurance system, U.S. workers are likely to repurpose earned vacation or sick time for family and health care reasons, leading to increased burnout, turnover and poorer mental health outcomes,” the study stated.

The paid family leave gaps come amid a child care landscape that is also considered inaccessible and unaffordable to many in Ohio and across the country.

Some state legislatures have already taken steps to fill the paid leave gap, with 21 states and D.C. enacting paid leave laws in 2023.

A study of state-level programs conducted by the National Partnership for Women & Families in 2023 found improved labor force participation, less need for the Supplemental Nutrition Assistance Program (SNAP) or other public assistance programs, and improvements in health outcomes for children and parents.

“People’s access to paid leave should not depend on where they live or work or what kind of job they hold,” the NPWF stated. “The success of paid family and medical leave programs at the state level demonstrates that there is an effective, affordable and proven model that works for families, businesses and the economy.”

Ohio’s economy could see boosts with the implementation of paid leave policies, according to Groundwork’s analysis. A full-time employee in Ohio gives up about $3,100 in income if they take one month of unpaid leave.

“If women in Ohio could participate in the labor force at the same rate as women in countries with paid leave policies, the state would see approximately $3.9 billion more in wages statewide, simultaneously boosting the state economy and helping to stabilize families,” the study stated.

Citing Federal Reserve estimates, the research stated Ohio’s overall GDP would have been $67 billion higher between 2005 and 2019 “if gender and racial wealth gaps were closed.”

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