Breaking Down: The Economic Cost of Child Care Disruptions in Washington
Turnover, absenteeism, and lost family income because of child care issues results in a $6 billion reduction of the state’s economy in 2023, according to a new analysis from Child Care Aware of Washington.
Recent investments in child care kept child care businesses open during the pandemic and kept the industry from bottoming out in Washington, unlike in many other states. But the child care crisis here is still having deep impacts.
Without a system that is accessible and affordable for families and pays providers a living wage, Washington is paying for child care through losses to the economy.
The High Cost of Underfunding Child Care analysis illustrates the stark consequences of not fully addressing the child care crisis in Washington:
Costs to Employers: $2.5 Billion in 2023
- Businesses’ costs and revenue are negatively affected when staff need to call out – 62% of parents have missed at least one day of work in the past three months because of child care issues. Those missed days resulted in a $2.5 billion cost to Washington’s businesses.
- Employee turnover is costly for businesses, and nearly 40% of parents report having quit or been fired since having children. Looking at just the cost of bringing in new staff to replace workers who quit or were let go due to child care issues, Washington businesses faced an additional $1.5 billion cost in 2023 as well.
Cost to Families: $2.9 Billion in 2023
- Why?: You can’t get paid if you can’t work. This new analysis looks at how missed work from child care issues causes missed income on parents’ pay checks, had suitable child care been available for them.
- Long Term: 1 in 10 parents have been out of work for at least a year since having a child, and over 1 in 3 (43%) have been out for at least three months.
- Not included in the analysis: Parents who are not working because of child care disruptions miss opportunities for future financial security, like opportunities for training, education, and better paying jobs. The new report states that the total impact to parents is likely much higher, because of how difficult it is to calculate these future possible opportunities.
What are parents and providers facing in child care right now?
- According to the Center for American Progress, almost two-thirds (63%) of Washington residents live in a child care “desert,” where there are more than three children under age 5 for every licensed child care slot.
- Data from the Federal Reserve Bank of St. Louis shows Washington ranks as the 11th least affordable state for child care.
- In Washington, child care employees rank in the third percentile of occupational wages (below dishwashers and animal caretakers). The poverty rate for early educators in Washington is 17.7%, more than twice as high as all workers (8.2%).
What can we do about it?
Child Care for WA is a statewide campaign of parents, providers and advocates working to fix the child care crisis in Washington. The Child Care for WA campaign is calling for living wages and benefits for child care providers, and access to high-quality affordable care for all families at no more than 7% of family income.