UN SDG #8 Decent Work and Economic Growth UN SDG #8
UN SDG #4 Quality Education UN SDG #4

challenge

3 shares

Quality Childcare Improves Educational and Workforce Outcomes

High-quality childcare provides a powerful two-generation approach to building the human capital that a prosperous and sustainable America requires. It supports parents: increasing completion of postsecondary education, raising labor force participation, increasing workforce productivity, and helping businesses attract and retain talent.

challenge

3 shares

Quality Childcare Improves Educational and Workforce Outcomes

High-quality childcare provides a powerful two-generation approach to building the human capital that a prosperous and sustainable America requires. It supports parents: increasing completion of postsecondary education, raising labor force participation, increasing workforce productivity, and helping businesses attract and retain talent.
14M
people impacted
$660B
potential funding
the problem
Nature and Context

According to the US Census Department, there are over 15M families with children under the age of six.

By laying the crucial groundwork for tomorrow’s workforce and promoting a strong workforce today, high-quality childcare provides a powerful two-generation approach to building the human capital that a prosperous and sustainable America requires:

  • It supports parents increasing completion of postsecondary education, raising labor force participation, increasing workforce productivity, and helping business attract and retain talent.

  • And it ensures that children have the chance to develop well and begin kindergarten ready to thrive in school, work, and life.

For American business, advancing high-quality childcare is a winning proposition. It’s a wise investment in America’s future—strengthening business today while building the workforce we’ll depend on tomorrow and for decades to come.

Symptoms and Causes

Across the country, parents are struggling to find childcare while they work. Of the 14 million parents with children under three years old, 78% are working. Many of them can’t find reliable daycare for their kids.

A study from The Council for a Strong America and ReadyNation outlined the impact of poor childcare options in the United States.

The lack of childcare options costs the United States $57 billion annually.

the impact
Negative Effects

Each year:

  • Working parents lose on average $3,350 in lost earnings, in reduced productivity at work, and in more time looking for work.

  • Across the 11 million parents, this annual burden is $37bn.

  • Businesses lose on average $1,150 per working parent in reduced revenue and in extra recruitment costs.

  • In aggregate, the burden on business is $13bn.

  • Taxpayers lose on average $630 per working parent in lower income tax and sales tax.

  • In aggregate, this amounts to reduced tax revenues of $7bn.

Economic Impact

In the US, the macroeconomic consequences, according to a report was commissioned by ReadyNation /Council for a Strong America, with funding from the Pritzker Children's Initiative.

  • Working parents lose on average $8,940 in lost earnings, reduced participation in the labor market, and lower returns to experience. Across the 11 million parents, this annual burden is $98bn.

  • Businesses lose on average $1,490 per working parent in reduced revenue and in extra recruitment costs. In aggregate, the burden on business is $16bn.

  • Taxpayers lose on average $2,270 per working parent in lower income tax and sales tax. In aggregate, this amounts to reduced tax revenues of $25bn.

Just in WA state, a report by the US Chamber of Commerce, explains that the lack of access to quality high-care it’s costing Washington businesses more than $2 billion per year in employee turnover or missed work, and the total cost to the state economy tops more than $6.5 billion per year.

Success Metrics
who benefits from solving this problem
Organization Types
  • Employers of any kind

  • Nonprofit organizations

  • Educational institutions

Stakeholders
  • Organizations providing childcare

  • Nonprofits

  • Parents

  • Families

  • Schools

  • Employers

financial insights
Current Funding

Potential Solution Funding

ideas
Ideas Description

Tech Solutions

InPlay is a non-profit whose mission is to connect kids and youth to summer and after-school programs that ignite their individual interests and talents, thereby reducing the achievement gap.

Wiggle Room offers much-needed relief to anyone who struggles to balance the demands of work and childcare. Wiggle Room helps you quickly and confidently navigate unplanned childcare needs—reclaiming agency in at work, at home, and in life.

Kinedu unleashes early childhood development at scale by fostering quality learning experiences at home and at school.

The following ideas are part of collaborative work done by the US Chamber of Commerce Foundation:

Join Forces

  • Join or build an early childhood business coalition to educate and engage peers and the public.

Set the Policy Agenda

  • Leverage your influence to serve as a public policy advocate for young children. Include childcare in your local business organization's legislative agenda.

Make the Business Case

  • Promote early learning policies as part of the economic development agenda.

Speak Out for Children

  • Share your knowledge through speaking engagements, op-eds, and blogs that highlight the impact of high-quality childcare on children, families, local businesses, and regional economic development.

Contribute Through Philanthropy

  • Invest your philanthropic dollars in organizations and providers that support early care and learning programs for low-income children.

Lead by Example

  • Adopt policies that support your employees who have young children. Implement a childcare benefits program and consider establishing an on-site childcare center.

Initiate Local Innovation

  • Create a team of local business, community, and childcare leaders to explore local challenges and opportunities, identify new partnerships, and develop innovative, community-wide strategies for improving access to and delivery of high-quality child care. Collaborate with local organizations to launch pilot, 'proof of concept' models. Investigate options for public-private partnerships and innovative financing mechanisms like pay-for-success and social impact bonds to scale up evidence-based programs with a demonstrated record of success.

Lay the Groundwork for Systemic Change

  • Work with state or local partners to begin developing a fact base on the existing childcare policy landscape.

Make a Site Visit

  • Take a couple of hours for a visit to a local childcare provider.

Ideas Value Proposition
Ideas Sustainability
attributions
Data Sources
Contributors to this Page

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