A recent report highlights the substantial economic benefits that North Carolina could gain from solving its child care crisis, projecting gains in jobs, economic output, and GDP. The study, released by the N.C. Department of Commerce and nonprofit NC Child, estimates that addressing child care accessibility and affordability could add up to 68,000 jobs, boost the state’s annual economic input by up to $13.3 billion, and increase its GDP by as much as $7.5 billion. Samantha Cole from the Department of Commerce emphasized that child care access is not only vital for children and families but is a key factor in the state’s economic health.
North Carolina’s child care challenges mirror national trends, as previous reports have shown significant economic losses tied to inadequate child care access. A report released in June by the Chamber of Commerce estimated annual economic losses of $5.65 billion in North Carolina due to the current child care market’s shortcomings. Tiffany Gladney, senior director at NC Child, noted that the combined data from these reports demonstrate both the economic impact of the ongoing child care crisis and the potential economic benefits of resolving it.
Employers are feeling the strain of limited child care options, with many citing it as a barrier to hiring. The report notes that since 2019, around 100,000 fewer parents of young children are participating in the labor force. Businesses are now encouraged to be part of the solution, with recommendations such as helping with child care tuition, offering on-site child care, and supporting local child care initiatives. This approach is seen as a pathway to retain and attract talent, which in turn could help address workforce shortages.
There is momentum within the business community to tackle these issues through innovative partnerships and advocacy. The NC Chamber has formed a Child Care Coalition to unite business leaders around child care access and affordability. Programs like the Tri-Share pilot in North Carolina, where child care costs are split among employers, employees, and the state, illustrate how public-private collaborations can help solve child care challenges while benefiting employers through lower turnover and increased workforce stability.
On the policy front, the report recommends a range of solutions to make child care more sustainable and accessible. These include increasing stabilization funding, enhancing subsidies, expanding pre-K programs, and improving wage support for early childhood teachers. Gladney stressed the need for a multifaceted approach, involving various stakeholders, including the business sector, to address both the high costs for parents and low wages for providers, which together create a fragile child care market.
Additionally, as Western North Carolina rebuilds from Hurricane Helene, child care access is seen as essential for recovery. Cole pointed out that without accessible child care, parents may struggle to return to work, which could hinder the region’s economic redevelopment. Ensuring stable child care infrastructure is viewed as critical for supporting community resilience and economic recovery in the aftermath of natural disasters, just as essential as physical infrastructure like roads and utilities.
