April 10, 2008 issue
Economics of Childcare
Story by Kathleen McFadden
Childcare is the kind of thing you don’t really think about unless you need it. But if you need it, childcare is a huge issue for families—not just the cost, and it’s often one of a family’s top expenses each month, but also the ability to find an open slot in a quality center and the ability to coordinate work schedules with a center’s schedule.
But childcare is an issue that doesn’t just affect families with young children. Childcare is a community issue because of its economics.
Childcare plays a critical role in the infrastructure of any community. First, economies need workers and workers need care for their children. Second, and the childcare industry creates jobs and contributes revenue to the community in the form of taxes and increased spending.
Local economies can thrive if working parents have enough childcare options, according to the National Economic Development & Law Center’s Jen Wohl. Lack of childcare options limits short-term economic development because it inhibits parents from fully participating in the workforce.
According to Harris Interactive’s 2002 Unscheduled Absence Survey, unscheduled absenteeism cost small business an average of $60,000 annually; for large companies, that cost is more than $3.6 million. One-quarter of those absences are due to family issues, including children’s illness and unscheduled breakdowns in childcare arrangements.
A recent economic impact study released by the National Economic Development and Law Center reported the following about the childcare industry in North Carolina:
• Generates $1.5 billion annually, more than scientific research and development and wireless telecommunications industries
• Provides more than 46,000 jobs in the state
• Helps other industries because parents are able to work productively outside of the home and to also attend higher education programs to update their skills
• Helps guarantee North Carolina’s economic future, because upcoming generations are prepared for school and workplace success
According to the Watauga County Children’s Council, in Watauga County alone, 209 people are employed in the childcare industry, generating a total direct economic impact of $28,466,623. The total gross incomes of working parents who use childcare is $26.5 million, with $7.9 million of that coming back in the form of local, state, and federal taxes.
The childcare industry is an important and growing segment of the state’s economy. Secretary of Commerce Jim Fain stated, “If North Carolina is to retain and grow industries of the 21st century, we must have quality childcare in place. Employers and employees want a comprehensive community infrastructure, and excellent child care is a vital part of that infrastructure.”
Children’s Council Plans Month of the Young Child Activities
To celebrate the Month of the Young Child in April, the Watauga County Children’s Council will have a display in the Boone Mall detailing its early literacy efforts through the Raise a Reader grant, as well as displays in four businesses that cater to children and families.
In addition, the Children’s Council’s mobile learning unit, Myrtle the Turtle, will visit childcare centers and conduct early literacy activities with the children.
Toward the end of the month, parents will receive a sticker—“Childcare makes a difference for our family”—when they drop their kids off at childcare centers.
For more information about childcare in Watauga County and about preparing preschoolers for success in school, call the Children’s Council at 828-262-5424.
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