Untapped Potential: Economic Impact of Childcare Breakdowns in the U.S.
High-quality childcare supports children's development and enables parents to advance professionally, boosting workforce productivity. When childcare systems fail, it hinders both children’s opportunities and parents’ participation in work or education, with significant economic consequences. Accessible, comprehensive childcare remains an urgent need.
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.
Featured Reports
Ohio’s childcare gaps drive parents out of the workforce, reduce tax revenue for the state, and put undue strain on households.
Indiana's childcare gaps cost the state $4.22 billion annually, driving parents out of the workforce and hindering economic growth. This report highlights the urgent need for sustainable childcare solutions to support Indiana's families and unlock the state's full economic 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.
State Reports
- Getting Working Parents Back to Work in MichiganThe 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.Read the Report
- Understanding the Impact on the Workforce and EducationThe U.S. Chamber Foundation partnered with the NC Chamber Foundation and NC Child to understand the unique needs of working parents in North Carolina.Read the Report
- Supporting Childcare Solutions to Unlock Economic PotentialThe 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.Read the Report
Untapped Potential in the News
Childcare Issues Lead to Annual $5 Billion Loss for Ohio’s Economy
Ohio’s lack of affordable childcare isn’t just hurting families — it’s costing the state’s economy nearly $5.5 billion in untapped taxes and employer earnings each year, according to the new report “Untapped Potential in Ohio.”
Missouri House Approves Child Care Tax Credit Bill
The Missouri House is one step closer to passing a bill that plans to incentivize childcare funding and help childcare providers.
Latest Content
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.
