People often complain about the exorbitant fees associated with daycare, a reality that should come as no surprise to anyone who has faced these costs. In fact, one mother from Boston highlighted in Time pays more for her toddler’s daycare than she would for tuition at the University of Massachusetts — and that was before the pandemic. These costs can overwhelm even families with two incomes, making it nearly impossible for single parents living near the poverty line to cope. And what about the childcare workers? They are in a truly tough spot.
Consider the challenges of a job that requires you to manage four to five toddlers, all while navigating the constant threat of Covid exposure. Your day is filled with enforcing rules, encouraging positive interactions, supervising bathroom breaks, feeding snacks, cleaning up, singing, and maintaining a cheerful demeanor. Finding time for breaks is a rare luxury, and constant sanitization is a must.
Yet, the median wage for childcare workers in the U.S. is just $11.65 per hour. Many workers may not even have access to healthcare. In contrast, a nearby fast-food restaurant pays starting wages of $14. “The pay is absolutely inadequate for what the job entails,” said Lisa Montgomery, a former childcare worker who left her job last June. “I can’t manage to live independently on the salary from childcare positions.”
The situation is dire; many childcare workers are compelled to take on second jobs. Even before the pandemic, Sarah Thompson, director of Maple Leaf Daycare in Cedar Rapids, Iowa, reported that ten out of her fifteen staff members needed additional jobs to make ends meet.
Daycares Can’t Simply Raise Wages
It seems straightforward: childcare workers need better pay, so we should offer it. In an ideal market, this would happen. However, daycares can’t simply increase their charges. A staggering 57% of American families spent over $10,000 on childcare last year, with 59% expecting to do the same in 2021. The average weekly cost for toddler care in a daycare center is an eye-watering $340, which often consumes 13% of a family’s income. In terms of wages, childcare workers are among the lowest-paid professions.
This paradox is easier to understand when you consider the true costs of care. If you want someone to engage positively with your child, keep them safe, and ensure cleanliness, adequate compensation is necessary. However, if families were required to pay the actual costs of infant care, the birth rate might plummet. The Center for American Progress estimates that, pre-pandemic, the realistic cost for infant daycare in Iowa was $25,863 compared to the pre-pandemic rate of $9,967.
Daycares already operate on razor-thin profit margins. Staff salaries account for 60%-80% of a daycare’s expenses, and many families have reached their limit on what they can afford. A study conducted during the pandemic revealed that staffing costs consumed 80% of a daycare’s budget, meaning any increase in wages would necessitate raising fees.
In the past year, an astounding 94% of parents reported cutting back on daycare expenses by reducing their work hours, shifting jobs, or leaving the workforce entirely. For many low-income families, this is not a feasible option, forcing them to resort to unlicensed in-home care, which can be risky.
If daycare centers increase wages to attract more workers, they must also raise prices. Yet, they’re not just looking for “better” workers; the number of childcare workers has decreased by 126,700, over 10% of pre-pandemic levels. They simply need enough staff to remain operational.
No one is willing to endure the demanding work for such low pay. The median wage, as reported by the Labor Department, is below the poverty line for a family of four. “I earn $11 an hour and I’m exhausted,” one worker shared during a break. “My credit card bills are nearly maxed out, and my savings are dwindling. It’s not looking good… I stay for the kids I care for. It’s heartbreaking to think about finding a new job.”
The Impact of Daycare Closures
Daycare closures have severe ramifications. Diana Cook, executive director of the National Child Care Association, noted, “Parents are in search of childcare, but we’re caught in a Catch-22. We lack the staff to open classrooms, so families cannot return to work due to the unavailability of childcare.” Daycares must adhere to specific child-to-adult ratios, which vary by state. If they cannot maintain these ratios, they must limit enrollment or shut down entirely. One facility in Texarkana, Texas, had to close due to staffing shortages. “We can’t find the personnel necessary to keep things running,” said Michelle Adams, the interim director and co-owner of the center.
The implications are significant. 1.8 million women have exited the workforce since the pandemic began, and while there are many contributing factors, childcare is a significant one.
The Need for Increased Subsidies
Although part of America’s Rescue Plan allocated $39 billion for childcare relief, with most funds aimed at struggling centers, only 14 states have managed to provide support to providers in accessing these funds. This is merely a temporary solution and won’t genuinely increase wages, leaving much to be desired regarding quality care.
We cannot afford to lose our childcare workers to fast-food chains or retail giants. Children require consistent and stable caregivers, particularly low-income kids who already face numerous challenges. If we compensated childcare workers similarly to how we pay kindergarten teachers — with health and retirement benefits — we could ensure our children receive the quality care they need during their formative years.
Jill Anderson, director of Little Learners Academy in rural Maine, expressed the need for substantial public investment to keep centers operational. The era of relying solely on tuition from parents is over. President Biden has proposed a plan to invest $450 billion into childcare, aiming to “lower costs for lower- and middle-income families,” “offer higher wages to caregivers,” and “provide free kindergarten for three- and four-year-olds.”
However, even some Democrats are hesitant. Senator Tom Harris from Ohio remarked that “it’s not the federal government’s role to educate all our children.” But if not the government, then who? Maybe we’re left to rely on fictional characters like SpongeBob SquarePants. In the current climate, with parents juggling remote work and childcare responsibilities, it certainly seems that way.
For further insights, you can read more about the challenges of childcare on our related blog.
Search Queries:
- How to navigate childcare costs
- Finding affordable daycare options
- Impact of childcare worker shortages
- Benefits of investing in childcare
- Childcare resources for working parents
In summary, the childcare sector is facing an unprecedented labor crisis, with workers leaving in search of better pay and conditions. Despite the high costs families face for childcare, facilities cannot simply raise wages without risking closure. This crisis has far-reaching implications for families and the economy, underscoring the urgent need for increased public investment and support for childcare workers.
Leave a Reply