People often complain about the exorbitant costs of daycare, which shouldn’t come as a surprise to anyone who has actually paid for it. Shockingly, daycare expenses can surpass the annual tuition of a public university. For instance, one Boston mother highlighted in Time pays more for her two-year-old’s childcare than she would for tuition at the University of Massachusetts — and this was prior to the pandemic. Such steep costs can financially burden families with two incomes, let alone single parents struggling to make ends meet. Meanwhile, childcare workers are left in a precarious situation.
Consider the demanding nature of a job where you are responsible for keeping four to five toddlers from touching one another, all while facing the constant risk of Covid exposure. The role involves enforcing rules, fostering positive interactions, supervising potty breaks, providing snacks, cleaning, singing, and maintaining a cheerful demeanor, all with very few breaks. In the midst of this, workers earn an average of $11.65 an hour — the median wage for childcare employees in the U.S. — with only a slim chance of receiving healthcare benefits. In contrast, a nearby Dunkin’ Donuts offers starting pay at $14 an hour.
“The pay is absolutely inadequate for the responsibilities of the position,” stated Lisa Thompson, a former childcare worker who left her job in June. “I can’t afford to live independently while working in childcare.” Many workers find themselves taking on second jobs; Deborah VanderGaast, director of Tipton Adaptive Daycare in Tipton, Iowa, noted that ten out of her fifteen staff members needed additional employment just to make ends meet.
While restaurant owners lament their inability to find staff, it’s worth noting that labor costs constitute only 30% of their overhead. The economy can function without restaurants, and owners can simply raise wages to attract employees. Daycares, however, operate under different constraints.
The Dilemma of Raising Wages
At first glance, it seems straightforward: childcare workers deserve higher pay, so let’s increase their wages. In a truly fair market, this should be feasible. However, daycares can’t simply hike fees. Last year, 57% of American families spent over $10,000 on childcare, and 59% anticipate doing so again in 2021. The average weekly cost for toddler daycare is a staggering $340, with families spending approximately 13% of their income on this service. Unfortunately, childcare workers rank among the lowest earners, often in the bottom 2% of all professions.
This situation may seem illogical until we recognize the true costs of childcare. If we want someone to care for children, ensuring their safety and well-being, we must compensate them accordingly. However, if childcare expenses reflected the actual costs — the American Center for Progress estimates that, in Iowa, true infant daycare costs could reach $25,863, compared to the pre-pandemic rate of $9,967 — the birth rate would likely plummet.
With childcare worker salaries representing 60%-80% of daycare costs, families are already pushed to their financial limits. A study conducted during the pandemic revealed that staffing costs accounted for 80% of a daycare’s budget; raising wages would inevitably lead to increased fees.
In just the past year, an alarming 94% of parents have reported decreasing their work hours, switching jobs, or leaving the workforce entirely due to childcare costs. For many low-income families, the option of finding licensed care is not available, forcing them into risky unlicensed in-home arrangements. The consequences are dire.
The Impact of Daycare Closures
Diane Barber, executive director of the Pennsylvania Child Care Association, succinctly described the current predicament: “Parents are seeking childcare, but it’s a Catch-22. We lack staff, so we can’t open classrooms, leaving families unable to return to work.” Daycare centers must adhere to specific child-to-adult ratios, which differ by state; failing to meet these ratios means either stopping enrollment or closing down altogether. For instance, Texas Klondike Academy in Texarkana shut its doors due to insufficient staffing. “We just can’t find the people we need to keep it running,” said Pamela Reynolds, the interim director and co-owner.
The ramifications of such closures can be severe for families. Since the onset of the pandemic, 1.8 million women have exited the workforce, and while multiple factors play a role, childcare is a significant one.
The Need for Subsidies
While the American Rescue Plan allocated $39 billion for childcare relief, the reality is that only 14 states have mobilized enough resources for providers to access these funds. Moreover, this represents a temporary solution that won’t address the root issues of worker pay and sustainability.
We cannot afford to lose our childcare workforce to fast food chains and retail stores. It is crucial for children, especially those from low-income backgrounds, to have consistent, dependable caregivers. If we compensated childcare workers at the same level as kindergarten teachers, including health and retirement benefits, we could ensure the quality of care our children require during their formative years. Jordyn Rossignol, owner of Miss Jordyn’s Child Development Center in Caribou, Maine, emphasized the need for substantial public investment, stating, “The era of surviving solely on parent tuition is over.”
President Biden has proposed a $450 billion investment in childcare, aiming to lower costs for families, increase wages for caregivers, and provide free kindergarten for three and four-year-olds. However, even some Democrats are resistant to this idea. Senator Joe Manchin III of West Virginia recently remarked, “It’s not the federal government’s responsibility to educate all our children.” If not the government, then whose responsibility is it?
In the current climate, with parents juggling remote work and childcare demands, the situation is becoming increasingly untenable.
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Summary:
The childcare workforce crisis is a pressing issue exacerbated by low wages and high costs. As childcare workers leave the profession in search of better pay, daycare centers struggle to maintain their operations, leading to significant consequences for families and the workforce. Without major investment and reform, the situation will only worsen, impacting the care of children across the country.
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