The availability and cost of child care are critical considerations in workforce development, particularly as they affect parents’ ability to participate fully in the labor market. Workforce development professionals play a key role in understanding and addressing these challenges as part of broader strategies to support economic growth and labor force engagement.
This article explores the dynamics of child care affordability and accessibility, examining how they intersect with workforce participation and economic outcomes, while highlighting strategies for workforce development professionals to engage with this issue.
The Challenge of Affordable Child Care
- The Cost of Child Care
Child care represents a significant expense for many families. In 2023, the average annual cost of full-time, center-based child care for an infant ranged from approximately $8,771 in Alabama to $14,040 in Arizona. In 39 states plus the District of Columbia, these costs exceeded the average annual in-state tuition at public colleges (https://www.childcareaware.org/state-child-care-cost-fact-sheets/). For low- to moderate-income families, these expenses may pose barriers to sustained employment or career advancement.
- Limited Availability
Access to child care is also constrained by availability. Many areas across the United States, particularly rural regions, are considered “child care deserts,” where the supply of licensed child care falls far short of demand. These regions highlight the growing gap between the need for child care and the services available, which disproportionately affects families with young children.
How Child Care Impacts Workforce Participation
- Labor Market Engagement
Studies consistently show that child care availability and affordability influence parents’ ability to participate in the labor market. According to Child Care Aware, nearly 60% of parents in a national survey reported that challenges with child care access had impacted their ability to accept a job or remain employed. The lack of affordable options often forces parents, particularly mothers, to reduce working hours or leave the workforce entirely.
This impact is further demonstrated in a U.S. Chamber of Commerce Foundation study, which found that employee turnover, absenteeism, and reduced productivity due to child care challenges cost employers billions annually. Addressing these barriers has the potential to bring more parents into the workforce and stabilize employment rates.
- Economic Stability
Reliable and affordable child care contributes to family economic stability by enabling parents to maintain steady employment and advance in their careers. A report from the Council for a Strong America estimates that lack of child care costs the U.S. economy $57 billion annually in lost productivity, earnings, and tax revenue. By removing these barriers, families are less likely to rely on public assistance programs and are better positioned to contribute to economic growth.
Broader Economic Considerations
- Creating Jobs in the Child Care Sector
Child care itself is a job-creating industry. It employs millions of individuals, including child care providers, early childhood educators, and administrative staff. Expanding access to affordable child care directly creates new employment opportunities in this sector. Additionally, child care centers support local economies by hiring locally and purchasing goods and services from nearby businesses.
- Boosting Workforce Participation
Affordable child care allows parents—particularly mothers—to return to or remain in the workforce, increasing the labor pool and reducing productivity losses associated with worker shortages. This also helps families earn wages, spend on goods and services, and contribute to tax revenues, supporting economic activity at both local and national levels.
- Long-Term Economic Benefits
High-quality child care is linked to better early childhood outcomes, which contribute to the development of a skilled and productive future workforce. Investments in child care can yield long-term economic returns through higher earnings and reduced social costs. Additionally, by supporting family economic stability, affordable child care reduces reliance on public assistance programs, easing the burden on public resources.
- Supporting Workforce Resilience
Parents with reliable child care are less likely to miss work or leave their jobs, which helps businesses reduce turnover costs and maintain a stable workforce. Employers that provide or subsidize child care are also better positioned to attract diverse talent, including women and single parents.
Strategies for Workforce Development Professionals
Workforce development professionals can consider several approaches to addressing the intersection of child care and workforce participation.
Policy Engagement Engaging with policymakers to support funding for child care programs, subsidies, and tax incentives for working families could be one avenue to address affordability and accessibility challenges. Efforts such as proposals to cap child care costs at $10 a day for most families have been discussed as potential solutions (https://www.congress.gov/bill/118th-congress/senate-bill/1354).
Employer Collaboration Workforce professionals can collaborate with employers to explore solutions like flexible work policies, child care stipends, and on-site child care facilities. Employers may benefit from understanding the potential return on investment of such initiatives.
Workforce Training in Child Care Developing training programs to prepare individuals for careers in the child care sector may help address provider shortages. Workforce professionals could partner with educational institutions to create pathways for certifications in early childhood education.
Integrated Workforce Programs Including child care support in workforce development programs may help increase participation and reduce barriers for parents. This might involve offering subsidies, forming partnerships with child care providers, or coordinating care options during training and employment activities.
Community-Based Initiatives Workforce professionals may also facilitate community-driven solutions, such as cooperative child care models or leveraging shared resources. These efforts could expand access while fostering local engagement.
Conclusion
Affordable and accessible child care remains a significant consideration for workforce participation and economic growth. It creates jobs within the child care sector, enables greater workforce participation, fosters economic mobility, and contributes to long-term societal benefits. Workforce development professionals, employers, policymakers, and community organizations all have potential roles to play in addressing these challenges. By examining the relationship between child care and workforce outcomes, stakeholders can develop targeted strategies to support parents, enhance economic productivity, and strengthen the labor force.
Photo: Naomi Shi