Access to affordable, quality childcare empowers families to plan for their financial future, strengthens businesses and our economy through greater workforce participation, and sets a strong foundation for our children’s development.
Yet, the United States faces a persistent childcare crisis that creates barriers to these positive outcomes. Parents struggle to access the care they need, care providers are straining to keep their doors open, and employers are challenged to find and retain workers.
This broken system has left many families at a difficult crossroads, navigating their options to work fewer hours, pay a high percentage of their income for childcare, or leave the workforce entirely. When parents can’t work, businesses lose talent, communities suffer and economic growth is adversely affected.
A recent report found that the economy loses $122 billion yearly due to this crisis. This figure has doubled since 2018. Another report shows that as many as 1.5 million workers are shortening their working hours or missing work days due to a lack of childcare options. Then, for families who can find care, often it is unaffordable, amounting to more than half of a family’s housing costs.
We have much to gain by identifying solutions to the nation’s childcare challenges but doing so will take innovative thinking and collaboration. Significant progress can be made if we take action in three critical areas.
First, we must address the entire continuum of care that parents need for their children. The childcare conversation is heavily focused on early learning options for our youngest kids, but the need for affordable, quality care does not end with kindergarten. Parents need before and after school and summer care for their children, and these options deserve an equitable level of attention and investment. Acknowledging and addressing this continuum of care creates consistency for families and removes barriers for parents who want to work.
Second, all stakeholders that make up the childcare ecosystem — government agencies, businesses and providers — must work together to meet demand with new, innovative solutions. At the recent National Child Care Innovation Summit hosted by the U.S. Chamber of Commerce Foundation and Executives Partnering to Invest in Children, I was encouraged to hear business leaders discuss how they address different childcare challenges together.
Among them were several YMCAs partnering with companies and other organizations to increase childcare options in their communities. The Treasure Valley Family YMCA in Boise, Idaho, shared how it adopts a new early learning co-op model that brings multiple businesses together to meet the area’s childcare needs. The YMCA of San Diego discussed partnerships focused on childcare solutions that meet the needs of military families. Each community will require its own approach to meet specific and unique childcare challenges. However, adapting strategies from forward-thinking partnerships like these is a great place to start.
Finally, financial investment is critical to building a childcare system that supports the positive growth and development of children and the broader economic well-being of communities. The National Bureau of Economic Research found that every dollar invested into early childhood programs for lower-income communities can generate up to $7.30 in economic effect. For nonprofits like the YMCA, sustained government investments in childcare are crucial to creating additional capacity. Public funding at the state, local and federal levels is a lifeline that enables nonprofits to maintain and grow early learning, after-school and summer programs. Sustained government funding would help providers, including YMCAs, attract and retain more staff to support more families.
There is no single solution to America’s childcare crisis, but smart investments, partnerships and offerings that fully meet the needs of working families must be part of the equation. The benefits will yield transformative results for children, families and the economy.
I urge leaders to prioritize childcare solutions that can support families and businesses and help unleash America’s full economic potential.
