These are unprecedented times—almost all parents have disruptions in their child care in the midst of COVID-19, and so many closures are causing economic uncertainty. Recently, the US Chamber of Commerce Foundation created a report that highlighted the significant child care economic challenges in the US before the virus outbreak, which may give us some idea of what could come during and after this crisis.
Untapped Potential outlines the economic loss to states across the country—on average $1 billion annually. The report focuses on the economic impact on four states—Iowa, Idaho, Mississippi and Pennsylvania, giving a snap shot of the effects felt by the entire country. These states’ efforts to increase access to high-quality child care are detailed, noting that businesses and economic and workforce development organizations view child care as part of their infrastructure to support a strong economy.
The result is a snapshot of the effects felt by the entire country.
U.S. states lose, on average, $1 billion annually due to child care challenges | |||
| Pennsylvania loses $3.47 billion annually | Iowa loses
| Mississippi loses $673 million annually | Idaho loses
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| These losses result in decreased tax revenue in each state $65 million lost in Idaho ——– Nearly $600 million in Pennsylvania | |||
| Not to mention the loss in business revenue from absenteeism and employee turnover when workers can’t find quality childcare. Employers estimate they lose millions over this issue. | Roughly 50% or more of the parents across all states reported missing work due to childcare issues over three months. | ||
| Pennsylvania loses $2.88 billion annually | Iowa loses $781 million annually | Mississippi loses $553 million annually | Idaho loses $414 million annually |
Employers can help attract and retain workers by providing child care benefits such as reimbursements, on-site child care or backup or emergency care. By providing peace of mind for working parents, we can create a stronger workforce for businesses and a stronger economy for everyone. Visit U.S. Chamber of Commerce Foundation page to learn more about all the findings of the Untapped Potential reports. Visit the Family Forward NC Guide to Family Forward Workplaces to learn more about what employers can do.