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Effects of Child Care on Businesses and the Economy

Employer
Business & Employer Resources

Why employers need to know how child care affects their businesses

Every year, Indiana loses $3 billion due to lack of high-quality child care options for Hoosier families. Employees miss work and have to quit their jobs; or, employers let them go as a result of child care issues. Increasingly, businesses are turning to child care benefits and early learning advocacy to retain skilled workers and stand out in today’s competitive talent market. Many employers are turning to child care benefits and early learning advocacy as a way to boost productivity and attract the best candidates

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Impact of Child Care on

The Bottom Line

Early childhood education and child care are more than a key part of children’s success. They also have a direct, measurable impact on your community’s vitality. Investments of time, talent and treasure in child care can improve a community’s economic vitality, a business’s ability to attract talent, and a working parent’s ability to thrive in their job.

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Economic Impact

Indiana loses over $3 billion dollars each year due to lack of access to child care.

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Talent Advantage

Family-friendly employers are more competitive in attracting new hires. Nearly half of working parents say they have passed on a job they felt would conflict with family obligations.

Few options

Four of out 10 Hoosier children live in a child care desert, which means less than one high quality child care seat exists for every three children. This puts many parents who want or need to work in an impossible situation.

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Return on Investment

For every $1 invested in early learning, $4 are returned to communities.

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Childcare is a huge issue among our workforce and finding affordable childcare in the area too. CCA has taken our needs and been working to put together different options for our employees.
Taylor Hurley
Community Marketing Lead, Sitel Group
Impact of Child Care on

Employee Well-being

When staff feel employers care about them as people, employee engagement improves. By championing child care benefits, you show you care about the whole person: both as a parent and an employee.

Child care may seem like something that’s in the private lives of employees, but there’s a direct impact on their productivity at work.

 

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Absenteeism

Over a six-month period, 45% of parents are absent from work at least once due to child care issues, missing an average of 4.3 days.

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Barrier to Entry

Many skilled workers reduce their hours or opt out of the workforce completely due to child care issues. 94% of of those workers are involuntarily working part-time.

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Loss in Wages

Working families lose an estimated $28.9 billion in wages due to lack of access to affordable child care and paid family and medical leave.

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Mind Share

64% of U.S. parents worry about their child’s safety every minute of the day. Employees distracted by unreliable caregivers or their child’s well-being can’t fully focus on the job-at-hand.

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How can you make an impact?

Workplaces’ care and benefits policies can improve work-life balance for parents, helping them support their families and, in turn, be better employees. See our Employer Investment in Early Learning page for actionable steps you can take at your company.
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Featured Video

Understanding the Concerns of Child Care in Central Indiana

Our four-part series Educating Business Leaders on Being Supportive in the Workplace with Child Concerns & Issues begins with understanding the concerns. Executive director, Mollie Smith, from Child Care Answers speaks on alarming statistics across central Indiana, auality and affordable child care, and the importance of a family-friendly business.

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Part 2: Mental & Emotional Impact on Families Dealing with Child Care Related Concerns/Issues

Featured Resource

Early Learning Matters

Get more insights into how child care impacts your bottom line and your employees. Learn how to make an impact. Hear from other employers leading the way. Find out your next steps. Act today!
Read More Download View in Spanish
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Employer Engagement Team

We grow with your business

Our team of specialists are in your corner, every step of the way. If you need help understanding your workforce’s child care needs, implementing family-friendly policies and benefits, or advocating for child care in the corporate community, call on one of these caring experts. Fill out our Community Information Form in English or Spanish or call 317.636.5727 to get connected.

megan day baby megan day bilingual family and community engagement specialist

Megan Day

Bilingual Family & Community Engagement Specialist
India Green

India Green

Relationship Growth Specialist
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Jessica Carman

Community Engagement Specialist
tom taylor family and community engagement manager

Tom Taylor

Family & Community Engagement Manager
Newsletter

Early care and education news to your inbox

Count on our newsletters to get you the most important early care and education news, when you need it. We send a different newsletter each month to either families, child care professionals, or communities/employers. Sign up for one or all today!

“Investments in Early Childhood Benefit Our Entire Community.” Urban Child Institute. Accessed July 20, 2021. http://www.urbanchildinstitute.org/articles/features/investments-in-early-childhood-benefit-our-entire-community.

“Lost Opportunities: The Impact of Inadequate Chid Child Care on Indiana’s Workforce & Economy” Indiana University Public Policy Institute, 2018.  https://earlylearningin.org/wp-content/uploads/2018/10/economic.impact_early.learning_sep.28.2018_final.pdf
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Contact Us

info@childcareanswers.org
Phone: 317.636.5727 Toll Free: 800.272.2937
1776 N. Meridian St., Suite 101
Indianapolis, IN 46202

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