States That Lack Childcare Workers
Friday, September 16th, 2022
Over the last two and a half years, the COVID-19 pandemic put a spotlight on the importance of childcare to the U.S. economy.
Throughout the pandemic, stressed-out families struggled to find reliable childcare as many providers shut down abruptly due to COVID exposures. This forced many parents and caretakers to take unplanned leave, attempt to work and care for children simultaneously, or to leave the workforce altogether. Recent research from the U.S. Chamber of Commerce Foundation estimates that as many as 40% of parents have had job decisions significantly affected by childcare issues, while gaps in care result in hundreds of millions of dollars in lost economic productivity in each state each year.
Childcare is an industry that has long faced economic challenges. Many providers must survive on profit margins under 1%, even as the average family with young children pays more than 13% of income to childcare costs. And the difficult business model of childcare offers few solutions for the industry’s most significant challenge: hiring, retaining, and paying good wages to early educators.
Despite childcare workers’ vital role in the economy, compensation in the field lags far behind many other professions. A typical childcare worker in the U.S. earned an hourly rate of $13.22 in 2021, which equates to $27,490 annually for full-time workers. In comparison, the median wage for all professions was $22 per hour, or $45,760 annually—approximately 60% higher. Wages in early care and education are especially low given that most childcare workers have at least some college education. Wages make it difficult for childcare providers to find and retain qualified staff. Many institutions of higher education steer students away from credentials that would lead to a career in the sector because compensation is so low. Estimates of employee turnover in childcare centers range from 26 to 40% annually. The pandemic exacerbated workforce challenges for the industry, as providers faced increased COVID exposure and employers in other industries saw significant wage increases.
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