Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Many parents in the workforce are staring down a bleak reality at the end of this month as their child care might vanish once federal funding for more than 70,000 centers ends. The centers are at risk of closing by the end of September, according to a recent CNBC article, when the federal government’s stabilization funds are set to expire. The funds, amounting to nearly $24 billion, were provided to states to sustain child care services as part of the American Rescue Plan of 2021. Â
This expiration could impact 3.2 million children and result in a potential loss of $10.6 billion in revenue due to decreased worker productivity, according to the report. Parents may have to reduce work hours or even leave their jobs entirely in the search for alternative child care solutions.Â
This looming crisis sheds light on the relationship between the child care field and the changing demographics of the workforce. The percentage of working mothers with young children has reached historic levels, surpassing the labor participation growth of other working-age women since 2020. However, the potential loss of tens of thousands of child care options across the country threatens to reverse this trend, potentially pushing many women back out of the workforce.Â
The child care workforce itself is also under immense strain. According to the U.S. Bureau of Labor Statistics, the average hourly wage of a child care worker in 2022 was $13.71, translating to a median annual income of $28,520. In contrast, kindergarten and elementary school teachers earned approximately $61,620 last year, revealing the wage disparity in the education sector.Â
According to a report published by The Council for a Strong America, the U.S. economy stands to lose about $122 billion annually in economic productivity and revenue when parents lack access to affordable, reliable child care. This crisis not only affects families but also has ripple effects throughout the economy, impacting even those without children.Â
Some experts believe that systemic changes, including broader parental leave policies and increased public funding for child care, are essential for addressing this issue on a larger scale. The child care crisis is not just a temporary challenge but a persistent issue that could negatively impact strides made in the U.S. workforce for working parents in the U.S. Addressing it is imperative for ensuring a stable and productive workforce in the coming years.Â
