From CNBC: 2024-06-08 08:00:01

The Covid-19 pandemic highlighted both vulnerabilities and resilience in the American economy, especially concerning child care as day cares closed and schools went remote. Employment in the child care sector has returned to pre-pandemic levels, but worker shortages and rising costs remain issues, impacting families and the economy. Advocates stress the economic importance of investing in child care.

A Bank of America report revealed a 15% to nearly 30% increase in child care costs for families, mainly affecting households earning between $100,000 and $250,000 annually. The expiration of stabilization funds from the American Rescue Plan Act could result in increased costs for families or center closures, affecting the nation’s workforce and productivity.

ReadyNation’s study found that the U.S. loses an estimated $122 billion annually due to the infant-toddler child care crisis, up from $57 billion pre-pandemic. According to Nancy Fishman, the loss equates to $1,470 per working parent each year. ReadyNation advocates for policies supporting child care providers to address the growing crisis.

In California, child care jobs have returned to 2020 levels, although the state’s child care economic toll of $17 billion is the highest in the U.S. Child Care Providers United, representing over 40,000 providers, won a contract in 2021 for first-in-the-nation retirement benefits. Providers are advocating to be fully reimbursed for care costs to improve working conditions and attract new providers.

Deborah Corley-Marzett, a child care provider in California, struggles with staffing shortages and competition from higher-paying sectors like fast food. Lawmakers like State Senator Nancy Skinner are pushing for increased spending on early care and education in California, stressing the importance of child care in economic recovery. Maintaining steady reimbursement rates for providers is a priority amidst budget challenges.



Read more at CNBC: Child care crisis costs U.S. businesses