In brief
- cares closed, schools went remote, and parents tried to balance work and children during the COVID-19 pandemic.
- Since then, a lack of labour and child slots has plagued the business.
- ReadyNation estimates that the infant-toddler child care issue costs the U.S. $122 billion in missed earnings, productivity, and revenue annually.
As day cares closed, schools went remote, and parents tried to balance work and family, the COVID-19 pandemic revealed both fissures and resilience in the American economy.
According to the Bureau of Labour Statistics, child care employment has returned to baseline post-pandemic, but a shortage of staff and spaces for children in some locations is weighing on the sector.
Costs are rising for families. According to a February Bank of America estimate, the average child care expense per household rose 15% to roughly 30% in the fourth quarter of 2023. The biggest rise was in those earning $100,000–$250,000.
Policymakers contend that baby and toddler care is an economic burden for all Americans, not just those with young children.
Another cause for family costs was expiration of the American Rescue Plan Act.
ReadyNation, a coalition of over 2,000 corporate executives, advocates for state and federal policies that strengthen the workforce and economy, including child care.
The group said in 2023 that the infant-toddler child care crisis costs the U.S. $122 billion in missed earnings, productivity, and sales. That’s up from $57 billion in 2018, before the pandemic exposed and aggravated systemic flaws for working families and their employers.
“Covid-19 and insufficient policy action have now considerably exacerbated the crisis.”
according to Ready Nation.
“All taxpayers are affected. Nancy Fishman, national director of ReadyNation, noted that unemployed people’s lack of purchasing power reduces sales taxes and income taxes, costing working parents $1,470 per year.
The group recommends supporting the “workforce behind the workforce”—early child care providers—nationwide.
Supporting the early childhood workforce could involve providing child care providers with benefits. We all know how important health-care coverage and the ability to obtain high-quality child care are, Fishman told CNBC. “Programs that support additional child care provider training and education are important.”
Solutions
ReadyNation estimates a $17 billion economic toll in California from lost earnings, productivity, and revenue. The group estimates that this is higher than any other state in the nation.
According to the Center for the Study of Child Care Employment, child care jobs in the state had rebounded to a 2020 baseline as of this springtime.
California child care workers formed Child Care Providers United in 2019, which represents over 40,000 home-based licenced and license-exempt friends and family child care providers. The union, SEIU Locals 99 and 521, and UDW/AFSCME Local 3930, represent California state subsidy suppliers.
The group received first-in-the-nation retirement benefits after winning its first contract in 2021.
The union claims state child care providers are reimbursed at a percentage of their costs. According to it, child care providers earn $7 to $10 an hour and often have no take-home money.
To improve dignity, keep providers open, and attract new providers, providers are lobbying the state budget to be reimbursed for all care costs.
Bakersfield’s Deborah Corley-Marzett runs a subsidised in-home care centre. She told CNBC it’s hard to recruit additional help, find the ideal fit and offer competitive wages. The state’s fast-food workers recently won an unprecedented $20 an hour minimum wage, encouraging other sectors to follow.
Corley-Marzett said. “I don’t have enough kids. However, I cannot physically accept additional children, nor can I afford extra help .”
State Senator Nancy Skinner, a Bay Area Democrat and California Women’s Caucus head, said the group prioritises early child care and education. Over the past two years, the group lobbied for a $2 billion increase in state expenditure on early care and education, totaling $6.5 billion.
The Caucus is focusing on sustaining child care provider reimbursement rates as the state faces a budget shortfall.
Source : CNBC News