Untapped Potential: Economic Impact of Childcare Breakdowns in the U.S.
Numerous studies have underscored the positive impact of high-quality childcare on children's development and the professional growth of their parents. Providing children with a strong foundation allows their parents to pursue careers, education, or vocational skills, contributing to the overall productivity of the workforce. However, when the childcare system breaks down, it deprives children of valuable opportunities and disrupts the participation of parents in the workforce or educational achievement. This breakdown has far-reaching economic implications for states. Many families face the formidable challenge of accessing suitable options for their children, highlighting the urgent need for comprehensive and accessible childcare solutions.
The U.S. Chamber Foundation conducted studies in states across the country to better understand the impact of the childcare problem in their communities. The reports estimated that collectively, states lost billions of dollars in economic activity due to breakdowns in childcare.
Impact in States
Alaska
Untapped Potential
The U.S. Chamber Foundation partnered with the Alaska Chamber on this report to better understand the unique needs of working parents in Alaska and examine the current childcare landscape. Since the height of the pandemic, Alaska’s unemployment rate has slowly started to return to pre-pandemic levels, falling by more than five percentage points since April of 2020.
Arizona
Untapped Potential
The Chamber Foundation partnered with the Arizona Chamber on this report to better understand the unique needs of working parents in Arizona and examine the current childcare landscape. Arizona is one of the ten fastest growing states in the nation and is positioned to emerge from the pandemic with a strong and vibrant economy.
Arkansas
Untapped Potential
The U.S. Chamber of Commerce Foundation partnered with the Arkansas State Chamber of Commerce and Excel by Eight Foundations to understand how much breakdowns in childcare are currently costing Arkansas.
Florida
Untapped Potential
The U.S. Chamber Foundation partnered with the Florida Chamber Foundation to produce this report, which aims to address the unique needs of working parents in Florida by exploring the current childcare landscape.
Michigan
Untapped Potential
The U.S. Chamber Foundation partnered with the Grand Rapids Chamber, the Michigan Chamber of Commerce, and the Early Childhood Investment Corporation (ECIC) on this report, to understand the unique needs of working parents in Michigan by exploring the current childcare landscape.
Missouri
Untapped Potential
The U.S. Chamber Foundation partnered with the Missouri Chamber of Commerce and Industry on this report to better understand the unique needs of working parents in Missouri and examine the current childcare landscape.
North Carolina
The U.S. Chamber Foundation partnered with the NC Chamber Foundation and NC Child to understand the unique needs of working parents in North Carolina.
Texas
Untapped Potential
The U.S. Chamber of Commerce Foundation partnered with the Texas Chamber of Business and Industry and Early Matters to understand how much breakdowns in childcare are currently costing Texas.
Utah
Untapped Potential
The U.S. Chamber of Commerce Foundation partnered with United Way of Salt Lake, Voices of Utah Children, and the Salt Lake Chamber of Commerce on this report to better understand the unique needs of working parents in Utah and examine the current childcare landscape.
2020 Untapped Potential Reports
Creating Solutions to Complex Challenges
The U.S. Chamber of Commerce Foundation partnered with the business communities in Idaho, Iowa, Mississippi, and Pennsylvania and their early education partners to understand just how much breakdowns in childcare cost each state.
Latest Content
In the second installment of our Chamber Child Care Blog Series, Aaron explores how public-private partnerships across various states led to concrete initiatives that improved access to childcare.
The U.S. Chamber of Commerce Foundation studies found that state economies lost between $100 million and $10 billion this year because of childcare issues.
To find innovative solutions, we must build innovative partnerships. State and local chambers and Child Care Resource and Referral Agencies (CCR&Rs) can combine their respective expertise to implement childcare solutions that are specific to the needs of their communities.
Childcare is important for children, and it is essential for working parents. Parents rely on childcare to help them enter, re-enter, or remain in the workforce. But access to affordable, quality childcare is hard to come by, and now due to the COVID-19 pandemic, families are experiencing additional challenges in finding childcare that meets their needs. It is no secret that parents dedicate significant energy and resources balancing their roles at home, in the community, and in the workplace. Parents must consider various factors in determining the level and type of childcare solutions that best meet their needs. These factors make up what we’re referring to as the ‘Childcare Equation.’
The U.S. Chamber of Commerce Foundation today released a report examining the impact of childcare issues on Pennsylvania’s state economy. The study found that Pennsylvania loses an estimated $3.47 billion annually for the state’s economy.
The U.S. Chamber of Commerce Foundation today released a report examining the impact of childcare issues on Mississippi’s state economy. The study found that Mississippi loses an estimated $673 million annually for the state’s economy. This number includes an estimated $120 million annual loss in tax revenue as well as an estimated annual loss to Mississippi employers of $553 million on absences and employee turnover as a result of childcare breakdowns.
The U.S. Chamber of Commerce Foundation today released a report examining the impact of childcare issues on Iowa’s state economy. The study found that Iowa loses an estimated $935 million annually for the state’s economy. This number includes an estimated $153 million annual loss in tax revenue as well as an estimated annual loss to Iowa’s employers of $781 million on absences and employee turnover as a result of childcare breakdowns.
The U.S. Chamber of Commerce Foundation today released a report examining the impact of childcare issues on Idaho’s state economy. The study found that Idaho loses an estimated $479 million annually for the state’s economy. This number includes an estimated $65 million annual loss in tax revenue as well as an estimated annual loss to Idaho’s employers of $414 million on absences and employee turnover as a result of childcare breakdowns.
Building on the work of other states, we partnered with the business communities in Idaho, Iowa, Mississippi, and Pennsylvania and their early education partners to understand just how much breakdowns in childcare cost each state. In this study we looked at the causes of childcare challenges as well as motivations behind why parents select various childcare providers. Knowing many employers want to facilitate more access to childcare but do not know where to begin, we sought to learn what types of childcare benefits working parents desire most from employers.
