How Childcare Impacts Indiana’s Workforce Productivity and the State’s Economy
The U.S. Chamber of Commerce Foundation highlights childcare as a critical two-generation workforce issue, essential for today's workforce and the development of tomorrow's. Indiana faces significant childcare gaps due to a tight labor market and lack of sustainable solutions, driving parents out of the workforce and reducing state tax revenue. This report, produced in partnership with the Indiana Chamber of Commerce and Early Learning Indiana, explores the current childcare landscape and its impact on working parents and the state economy.
Surveying 609 parents of children under six, the report estimates that insufficient childcare costs Indiana $4.22 billion annually in lost economic activity. Childcare is a key factor in labor force participation, with Indiana ranking 27th among states. The lack of adequate childcare options hinders parents' ability to work and the state's economic growth potential. Addressing these challenges requires collaboration across sectors to ensure the well-being of Indiana's children, families, businesses, and economy.
High-quality childcare offers developmental benefits for children and allows parents to pursue careers or education. However, many Indiana families struggle to access affordable childcare, impacting the state's economy. This report quantifies the economic impact of childcare issues and builds on previous studies in other states, emphasizing the need for childcare initiatives to unlock Indiana's full economic potential.
