ST. PAUL, Minn.--(BUSINESS WIRE)--With the U.S. fertility rate dropping to an all-time low in 2023¹, a new study says economic conditions are having a major impact on the decision of whether to have children among Americans working full-time.

Securian Financial, an employee benefits provider, surveyed nearly 1,500 prime child-bearing generation Americans² working full-time for large employers.³ According to their study, a whopping 84% of Generation Z (adults currently ages 18-27) and 71% of Millennials (ages 28-43) surveyed say current economic conditions—including inflation, the cost of living and job security—are influencing their decisions to have children or expand their family.

“There are several factors contributing to decreasing fertility in the U.S.—from more people prioritizing their careers over marriage and parenthood to an increase in the number people simply choosing not to have children—but there is no doubt that economics are also a major consideration,” said Lydia Jilek, a Securian Financial vice president for Employee Benefits Solutions. “Starting and growing a family is more expensive than it ever has been, and there are no signs that the plethora of costs associated with raising children are going anywhere but up.”

Among those surveyed by Securian Financial who said they are planning to start a family and feeling pressure about it, both Generation Z and Millennials said negative financial concerns outweigh other family building pressures.

Negative impact of family-building pressures on various aspects of well-being

• Financial well-being: 38% Generation Z; 40% Millennials
• Mental well-being: 27% Generation Z; 35% Millennials
• Physical well-being: 25% Generation Z; 27% Millennials
• Social well-being: 25% Generation Z; 29% Millennials
• Professional well-being: 23% Generation Z; 22% Millennials

The financial concerns are valid. According to the U.S. Department of Agriculture, between 2011 and 2023, the cost of raising a child from birth to age 17 rose 42%.⁴ Child care costs alone rose 22% between 2020 and 2024, according to the Bureau of Labor Statistics, and the actual dollar amount can vary greatly from state to state. Regardless of location, child care is the highest expense, followed by additional housing and food costs.⁵

The employees surveyed by Securian Financial said they are increasingly turning to their employers for benefits to help alleviate the financial stress and other pressures of building a family.

In fact, 75% of Generation Z and 69% of Millennial employees surveyed said they are more likely to choose an employer based on the family-building benefits they provide. Additionally, 69% of Generation Z and 73% of Millennials said they are more likely to stay with an employer based on their family-building benefits.

The survey found the top 10 most important family-building benefits for each generation are:

“Employers need be sure that they are offering the family-building benefits that their younger employees expect to be offered in the workplace, or they risk losing both talented new and existing employees to competitors,” said Jilek. “As they think about what is next with their benefits packages, employers also need to be aware of emerging employee needs when it comes to family building. This includes infertility assistance, as more employees have children later in life, the pressures on ‘sandwich generation’ employees caring for both their children and elderly parents, and rising LGBTQ+ interest in growing their families.”