For Pennsylvania, inadequate child care options impose substantial and long-lasting consequences; its effects are felt by parents, businesses, and the commonwealth’s taxpayers. The top-line findings of a new study examining the economic impacts of problems in Pennsylvania’s child care system on working parents, employers, and taxpayers describe the consequences. The verdict: an annual economic cost of $6.65 billion in lost earnings, productivity, and revenue.
Productivity challenges affect both employers and employees:
Pennsylvania’s workforce includes over one million working parents with children under six years old. A critical component of our economy, parents with young children are employees, customers, clients, and consumers.
A lack of affordable, quality child care impacts employers on multiple levels. These survey results will help the PA Chamber and the PA Early Learning Investment Commission identify strategies to elevate the business case for child care and guide innovative and strategic solutions.
81 percent of employers indicated they have moderate or significant recruitment and retention issues due to child care, according to a report published in 2024 by the Pennsylvania Early Learning Investment Commission and the PA Chamber of Business and Industry.
64 percent of employers are unaware of or haven’t used tools to address employees’ child care needs.
Early childhood educators are the workforce behind the workforce. However, child care providers in Pennsylvania earn less than $13 an hour.
This roadmap from the U.S. Chamber of Commerce Foundation helps senior leaders and business owners learn their options for supporting working parents with their child care needs. It is also intended to help leaders understand what to expect when embarking on this journey and how to take action.
Small businesses can make a big difference simply by understanding what resources exist for their working families with young children and making that information readily available.