The Child Care Crisis Costs the U.S. Economy $172 Billion Each Year
Impact on families & employers is escalating
View the fact sheet: https://www.instituteforchildsuccess.org/resources/resource/cost-child-care-fact-sheet/
View the full report: https://www.instituteforchildsuccess.org/resources/resource/cost-child-care-crisis-report/
View the flipbook: https://online.flipbuilder.com/otrh/rkay/
Vie the technical report: https://www.instituteforchildsuccess.org/resources/resource/child-care-working-families/
ReadyNation’s new study finds that the nation’s child care crisis costs $172 billion in lost earnings, productivity, and revenue every year. This enormous economic burden impacts parents, their employers, and the nation’s taxpayers. Previous ReadyNation research that focused on families of infants and toddlers (children under age 3) found economic tolls of $57 billion in 2018 and $122 billion in 2022.
This new study expanded to families of children under age 5, to determine the current economic toll of insufficient child care for children below kindergarten age. ReadyNation’s data from the past seven years shows that the failure to significantly strengthen the country’s fragile child care infrastructure has led to escalating economic damage to employers, workers, and taxpayers.
Productivity challenges affect both employees and employers. In a new national poll of 801 working parents of young children, more than 60 percent reported that child care struggles led them to leave work early, be late for work, miss full days of work, or become distracted at work. About half missed part of a work shift. These challenges had predictable impacts, such as having work hours reduced, turning down promotions, and being demoted or fired. As a result, families lose $134 billion per year in forgone earnings and job search expenses. Meanwhile, productivity problems cause employers to lose $38 billion annually due to child care challenges faced by their workforce. [Taxpayers, in turn, lose $37 billion each year in lower federal and state tax revenue.]
Beyond its impact on the current workforce and economy, the child care crisis damages the future workforce by depriving children of nurturing, stimulating environments that support brain development while their parents work. Nearly all (90 percent) of the parents reported that child care availability is a challenge in some way. Almost half said it is a significant struggle to find child care that is affordable and 40 percent reported problems finding high-quality care.
ReadyNation’s data from the past seven years shows that the failure to strengthen the country’s fragile child care infrastructure has led to escalating economic damage to employers, workers, and taxpayers. In short, insufficient child care acts as a drag on the U.S. economy. Policymakers at the federal, state, and local levels must support evidence-based policies that enhance the availability and affordability of high-quality child care. With wise investments, policymakers can improve the lives of millions of families today and strengthen the workforce and economy both now and into the future.
Since 2006, ReadyNation members have made a bottom-line case for effective, bipartisan investments in infants, toddlers, and older children as the future workforce that will drive success in the global marketplace. ReadyNation, along with Fight Crime: Invest in Kids and Mission: Readiness, is part of the new Strong Nation initiative, which is housed within the Institute for Child Success.
Strong Nation champions investments in evidence-based children’s programs that make our nation stronger. Through partnerships with state-based nonprofits that support children and families, these initiatives are currently operating at the state level in Illinois, Maine, Mississippi, Ohio, Pennsylvania, South Carolina, and Washington. ReadyNation is operating nationwide through a partnership with a national non-profit, and ICS is working to strengthen Fight Crime: Invest in Kids and Mission: Readiness nationally.
Launched in 2010, the Institute for Child Success (ICS) is an independent research and applied policy organization. ICS works to create a culture that facilitates and fosters the success of all children. ICS supports policymakers, service providers, government agencies, funders, and business leaders focused on early childhood development, healthcare, and education, with the goal of improving the lives of young children prenatal to age eight and their families. ICS helps young children succeed by working with stakeholders to seek holistic solutions to complex early childhood challenges.
For more about ReadyNation, contact Jill Boxler at jboxler@strongnation.org.