Research reveals paid leave paradox: parents love it but don’t know they can get it

NEW YORK, NY (February 26, 2025) – Moms First, a national nonprofit organization fighting for America’s moms and families, and McKinsey & Company, a global management consulting firm, today released first-of-its-kind research into state paid parental leave programs. The research reveals a surprising paradox: families are almost twice as likely to be satisfied with state paid leave compared to other state benefits, but are less likely to use it than other comparable benefits due to low awareness. The full report is available at https://momsfirst.us/paid-leave-report.

Paid family leave is one of the most effective public policy tools for improving child development outcomes, increasing lifetime earnings for women and families, and helping businesses attract and retain top talent.^[1] Yet, across the states analyzed, only two out of five eligible parents used any state paid parental leave in 2022, a benefit worth $6,000-10,000 per parent that did not use any leave. This is more than double the value of the 2021 pandemic-era child tax credit that cut child poverty in half.^[2]

“We’re seeing a disconnect between how much families value paid leave and their ability to actually use it,” said Reshma Saujani, founder and CEO at Moms First. “That’s why we’ve developed Paidleave.AI, using artificial intelligence to help bridge this gap between policy and practice. Our goal is to improve the durability of state paid family leave programs and to grow a national constituency of supporters for the policy.”

“Research into paid leave usage has been hindered by the fragmented landscape of state-level policies, differences between types of leave, and the evolving role of employers. Our work with Moms First aimed to bridge this gap by examining paid parental leave in three of the largest states with long-standing policies,” said Ramya Parthasarathy, a Partner in McKinsey & Company’s New York office. “The study provides an unprecedented review of who uses paid family leave, their satisfaction, and how to reduce barriers to fully accessing its benefits – and it ultimately shows that having good legislation isn’t enough – implementation is critical.”

The first-of-its-kind analysis of U.S. Census and state claims data revealed surprising insights about paid leave eligibility and usage, including:

• Women are significantly less likely to be eligible, due in part to women’s lower labor force participation.
• Men are about 25 percentage points more likely to be eligible—but 25 percentage points less likely to use the benefit. As a result, men account for the majority of total weeks of unused parental leave benefits.
• Lower-wage workers are less likely to qualify because of employment and wage eligibility requirements, even though they and their children might benefit most. People earning less than $40,000 per year are less than half as likely to use state leave as those earning more than $100,000. 

A follow-up survey of 2,000 new parents also revealed key barriers to paid leave usage:

• Awareness gaps: Nearly 60 percent of the survey respondents who were eligible for state PPL but did not use did not know it was available to them. 
• Complexity of requirements and applications: Though parents were almost twice as likely to be more satisfied with state paid family leave than with other state benefits on average, satisfaction was lowest when learning about paid family leave, determining eligibility, and submitting applications.  
• Employer support: employers are a key source of knowledge of state paid parental leave, and there’s a big opportunity to improve the support that smaller employers offer their employees navigating paid leave.
• Economic and career considerations: Over two-thirds of those who did not take leave feared job losses or career setbacks. These concerns rank highest for low wage earners, who are also more likely to say they couldn’t afford to take paid family leave 
• Societal beliefs: The most prevalent belief among men, the greatest source of underutilization, is that they did not need to take leave if their partners were taking it.

The research points to recommendations for public engagement, technology, employers, and state governments to improve access to paid leave. In particular, innovative tools such as Paidleave.AI can provide 24/7, one-on-one personalized support to help parents overcome the complexity of paid leave eligibility requirements and applications in a preferred language.

Paidleave.AI is a free custom AI chatbot from Moms First to help parents navigate state paid leave benefits. Launched in December 2023, the tool has helped tens of thousands of parents understand and navigate their benefits, resulting in potentially tens of millions of dollars in paid leave benefits for working families. The chatbot is possible thanks to generous support from major funders including Craig Newmark Philanthropies, Capital One, and Robin Hood Foundation.

“I’ve worked for fifty years connecting technology with good customer service, trying to help tech providers treat people as we want to be treated,” said Craig Newmark, founder of craigslist and Craig Newmark Philanthropies. “Working families really could use a little help, like paid leave, and Paidleave.AI is the real thing, a way to put money into parents’ pockets to raise their families.”

“Paid leave is a powerful tool to improve economic outcomes for women and families, but in order to realize its benefits, we need more parents to know about and access these policies,” said Loris Toribio, Robin Hood’s Director of Economic and Fiscal Policy. “We’re excited to support not only more research into how parents are using paid leave, but also practical tools like Paidleave.AI with the potential to improve uptake of this critical policy.”

“Policies like paid leave help hardworking families make ends meet, yet not enough eligible parents are claiming their benefits,” said Kerone Vatel, Head of Community Impact & Investment at Capital One. “Our support for Paidleave.AI is designed to make paid leave more accessible to families who need it most and to showcase how new technologies can remove barriers for working parents and return money to their wallets.”

To date, research has yielded few answers into paid leave eligibility, utilization, and experience, given the patchwork of state policies, variations among parental and other forms of family leave, and the evolving role of employers. New research by Moms First and McKinsey looked at three of the largest states with the longest-standing PFL policies. Based on a first-of-its-kind analysis of census and state claims data, along with a survey of more than 2,000 new parents, we got an unprecedented look at who is using paid family leave and why, how satisfied they are with it, and how to reduce barriers to its many benefits. To download a copy of the report, visit https://momsfirst.us/paid-leave-report.

Moms First and McKinsey will unveil the new research and recommendations at an event at Columbia University’s School for International Policy and Public Affairs. The event, titled “Making Benefits Work: Research, Policy, Technology, and the Future of Paid Leave” will take place on February 26, 2025 from 4-7pm and feature a discussion on the latest in paid leave research and policy change and a conversation on how innovative technology, including artificial intelligence, can help address some of the main challenges in government service delivery. To register for the event or to view a livestream, visit https://www.eventbrite.com/e/livestream-making-benefits-work-the-future-of-paid-leave-tickets-1245427249429.

About Moms First

Moms First is fighting for America’s moms. Our mission is to win paid leave and child care as economic imperatives that allow families to thrive. Our vision is a country that values motherhood and supports moms and families. Learn more at momsfirst.us.

About McKinsey & Company

McKinsey & Company is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next.

^[1]BPC, Kozak K, Greaves A, Waldfogel J, et al., Goldin, Claudia, and Joshua Mitchell, NPWF, BPC

^[2]Census, CBPP