The Covid-19 pandemic has revealed both strengths and weaknesses in the American economy, and one sector that has been particularly affected is child care. As day cares closed their doors and schools shifted to virtual learning, parents were left struggling to balance work and childcare responsibilities. Although the employment levels in the child care sector have returned to pre-pandemic levels, there is still a shortage of workers and available slots for children in certain areas, putting strain on the industry.
Rising Costs for Families
One of the most significant challenges facing families is the increasing costs of child care. A report from Bank of America indicated that average child care payments per household rose between 15% to nearly 30% year-on-year during the fourth quarter of 2023. The most significant spike was observed among households earning between $100,000 and $250,000 annually. This financial burden is impacting families across all income levels, highlighting child care as an economic issue that affects Americans universally.
The Role of Policy Advocates
Advocacy groups like ReadyNation are lobbying for policies and programs to support the child care sector at both state and federal levels. According to a 2023 report from ReadyNation, the nation’s infant-toddler child care crisis is costing the U.S. an estimated $122 billion annually in lost earnings, productivity, and revenue. This figure has nearly doubled since 2018, underscoring the urgent need for policy action to address the growing crisis.
California has been particularly hard hit by the child care crisis, with an estimated economic toll of $17 billion due to lost earnings and productivity. Although child care jobs in the state have rebounded to pre-pandemic levels, other states have experienced more significant job growth in this sector. Child care providers in California, such as the Child Care Providers United union, are advocating for fair reimbursement rates and benefits to support their work and attract new providers to the field.
Lawmakers are recognizing the urgency of addressing the child care crisis, with State Senator Nancy Skinner of California’s Women’s Caucus advocating for increased spending on early care and education. The Caucus has pushed for a $2 billion boost in state spending on child care over the past two years, bringing the total to $6.5 billion. Despite progress, challenges remain, including maintaining adequate reimbursement rates for child care providers amid a looming budget deficit.
The child care crisis in America is a multifaceted issue that requires collaborative efforts from policymakers, advocacy groups, and providers to ensure that families have access to affordable, high-quality child care. Addressing the shortage of workers, rising costs, and inadequate support for child care providers is essential to building a strong economy and supporting working families nationwide.