The Covid-19 pandemic has undoubtedly shed light on both the vulnerabilities and resilience of the American economy. One of the sectors that has been particularly impacted is child care, as the closure of daycares, remote learning in schools, and the juggling act of parents trying to balance work and childcare have become more prevalent. While the Bureau of Labor Statistics reports that employment in the child care sector has returned to pre-pandemic levels, there is a shortage of workers and available slots for children in certain areas, creating a strain on the industry. Additionally, families are facing increased costs, with the average child care payments per household rising between 15% and nearly 30% year on year, as reported by Bank of America.
According to an advocacy group called ReadyNation, the nation’s infant-toddler child care crisis is estimated to cost the U.S. a staggering $122 billion annually in lost earnings, productivity, and revenue. This is a significant increase from $57 billion in 2018, indicating that the pandemic has exacerbated existing issues within the system. The expiration of stabilization funds from the American Rescue Plan Act has added to the financial burden, potentially resulting in increased costs for families or the closure of child care centers. The impact is felt not only by families with young children but by all Americans, as the loss of taxpayers due to the child care crisis amounts to $1,470 per working parent.
ReadyNation emphasizes the importance of recognizing child care as an economic issue that affects the workforce as a whole. Supporting early child care providers, who are referred to as the “workforce behind the workforce,” is crucial. This support can include ensuring that child care providers have access to benefits such as healthcare and high-quality child care for their own children. Programs that offer additional training and education for child care providers are also essential in improving the quality of care provided.
In California, child care jobs have rebounded to pre-pandemic levels, but the economic toll due to the child care crisis is estimated to be $17 billion, surpassing that of any other state in the country. Child care providers in California, many of whom are part of the Child Care Providers United union, are advocating for fair reimbursement for the full cost of providing care. The union highlights the low wages of child care providers, with an average pay of $7 to $10 per hour, leaving many providers with no take-home pay. The struggle to attract new providers and retain existing ones is exacerbated by challenges such as competing wages in other sectors, like the recent increase in the minimum wage for fast-food workers.
Lawmakers, such as State Senator Nancy Skinner from California, acknowledge the progress that has been made in addressing the child care crisis but stress that more work needs to be done. Senator Skinner, who is also the chair of the California Women’s Caucus, has advocated for increased spending on early care and education, totaling $6.5 billion over the past two years. The Caucus is currently focused on maintaining steady reimbursement rates for child care providers, especially as the state faces budget deficits while trying to retain workers in other sectors experiencing labor shortages.
The child care crisis in the United States is a multifaceted issue with significant economic implications. As the economy continues to recover from the impact of the pandemic, addressing the challenges faced by child care providers and families is essential for sustainable growth and workforce development. Advocacy groups, policymakers, and stakeholders must work together to ensure that child care remains accessible, affordable, and of high quality for all families.
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