Child care access tied to improving economy, report shows

Written by Liz Bell

EdNC

Solving the child care crisis would bring significant economic benefits to North Carolina. report I found it.

Affordable and accessible child care would add up to 68,000 jobs in the state, increase annual economic input by up to $13.3 billion, and boost gross domestic product (GDP) by up to $7.5 billion. Research has shown that this is possible.

“Access to child care is an economic development issue,” said Samantha Cole, director of child care operations at the center. North Carolina Department of Commerce. The department, along with nonprofit organizations, released the report last month. NC Childadvocates for policies that improve the lives of children.

“This is not just about the health of children and families,” Cole said. “This is not just an issue related to improving outcomes for children and families; it is directly related to the economic health and health of North Carolina as a whole.”

This report is the latest on the economic impact of unpaid and inaccessible child care in North Carolina and elsewhere. NC Child also partnered with state and national chamber foundations in June; Publish a report It says the state loses about $5.65 billion each year due to the collapse of the child care market.

“Taken together, these two reports give us a good idea of ​​what our economy has missed out on because of the childcare crisis. They also tell us what our economy would be like if we were able to address the childcare crisis. ” said Tiffany Gladney of North Carolina Child Care Center. Senior Director of Policy and Government Relations.

Companies entering the market

One in five employers cite a lack of childcare as a barrier to employment, according to a new report. The study found that in 2023, there will be 100,000 fewer working-age parents with young children participating in the labor force than in 2019. It also found that between 14,498 and 31,067 parents are likely to return to the workforce in 2023.

As employers face these workforce challenges, the report suggests, there will be more opportunities to work on solutions.

The report recommends that companies consider paying for childcare for their employees. Dependent Care Flexible Spending Accountsupport the emergency backup child care needs of our employees, provide child care nearby or on-site, and invest in local child care expansion grants.

Cole and Gladney said there is already momentum at the local and state level.

The N.C. Chamber of Commerce childcare federation A group to engage business leaders in solving child care issues and advocating for policy change. Several councils have initiated or joined local initiatives to expand access and affordability. And Cole’s position as child care business liaison is a new role the state created this year to link child care to economic development.

“There is truly much to admire about the innovative public-private partnerships that are developing in communities across the state and across the country,” Cole said. Regarding emergency on-site care, she pointed out that: Deployed at UPS site in California Since then, employee turnover has decreased significantly. she pointed to north carolina Tryshare pilota program in 14 counties where employers, eligible employees, and the state government split child care costs 50-50. Cole then pointed to the on-site child care program at Hickory’s manufacturing facility, KLINGSPOR Abrasives.

“We have much to learn from the much creativity and innovation that communities, including community employer organizations, are bringing to very difficult problems, especially in the absence of the significant public investment needed in child care.” “I think there is expanded access at the state and federal level,” she said.

policy solutions

The report comes as the stabilization fund that keeps child care programs afloat across the state approaches its end in December, and as communities across western North Carolina continue to recover from hurricanes that have devastated families, businesses and child care programs.・This announcement was made while the city is beginning to recover from Helen.

Congress allocated $67.5 million to the stabilization fund this summer and promised to take more steps before the fund is depleted. Lawmakers are expected to return in November to discuss budget items, followed by a lengthy session in January to craft a new budget.

“When we tried to advocate for early childhood education, we realized there was an important element missing: the economic impact that early childhood education has on our state and local economies,” Gladney said.

The report recommends several policy strategies to address high costs for parents, low compensation for early childhood teachers, and the financial vulnerability of child care programs.

“The early childhood education crisis is not a one-size-fits-all solution,” Gladney said. “This requires a multifaceted solution, and we need everyone at the table, including the business community, to understand how we can make this more sustainable and affordable.”

This strategy includes more stabilization funding, funding to provide programs with lower floor rates for state child care subsidy programs, funding for education-based wage subsidies through the WAGE$ program, and funding for NC Pre-K Funding to expand and strengthen Smart Start, child and dependent tax credits, expand the state’s Tri-Share pilot program, provide free child care for children of early childhood teachers, and educate early childhood careers. Improve your route.

The report acknowledges that not all working-age parents with young children would choose to send their children to child care if it was affordable and available. That’s why we have a wide range of effects on stable childcare. For example, the report found that affordable child care would add an additional $5.7 billion to $13.3 billion in annual economic output, create 29,000 to 68,000 new jobs, and increase North Carolina’s gross domestic product. It estimates that the increase could be between $3.2 billion and $7.5 billion.

“Even taking into account parents who may wish to leave the labor force to care for their children, this report highlights the potential economic impact of adding working-age adults with young children into the workforce. “Growth in North Carolina” shows how child care policies can support a sustainable economy,” the report’s executive summary reads.

Cole said Helen will speak to her about the West’s recovery as a resident of the disaster-stricken area and as a working parent with young children.

“I certainly believe that child care infrastructure will be critical to community disaster recovery, almost as essential as other infrastructure such as roads and bridges, clean water and power, and internet access. ,” Cole said.

“Access to childcare facilities is critical to ensuring that those whose employment has unfortunately been affected by this disaster are able to re-enter the workforce,” she said. “It is essential to ensure that children are able to resume their daily lives and be on the path to kindergarten readiness…Without access to child care, it would have been extremely difficult for Western North Carolina We won’t be able to see the economic rebuilding and redevelopment of the country.”This disaster hit us the way we wanted it to.” ”

this article It first appeared education nc Republished here under a Creative Commons license.