Child Care Crisis in North Carolina Presents Potential Economic Boom, Study Reveals
By Liz Bell, EdNC
Solving the persistent child care crisis in North Carolina isn’t just a moral imperative; it’s an economic opportunity that could yield significant benefits for the state’s workforce and economy. A recent report highlights that improving access to affordable child care could unlock the potential for up to 68,000 new jobs, adding as much as $13.3 billion annually to the economic output and bolstering the state’s GDP by $7.5 billion.
“Child care access is an economic development issue,” emphasized Samantha Cole, child care business liaison at the North Carolina Department of Commerce. The report, released in collaboration with the nonprofit NC Child, underscores that solutions to child care challenges are essential not only for family welfare but also for the overall health of North Carolina’s economy.
The findings are part of a growing body of research illuminating the adverse economic impacts stemming from the unaffordability and inaccessibility of child care. A previous study revealed that North Carolina loses approximately $5.65 billion annually due to a fragile child care market. "These reports collectively illustrate the economic opportunities lost because of the child care crisis," explained Tiffany Gladney, NC Child’s senior director of policy and government relations.
Workforce Barriers Point to Need for Solutions
The report indicates that one in five employers struggles to hire due to insufficient child care options. In 2023 alone, about 100,000 working-age parents with young children were unable to participate in the labor force compared to 2019 figures. This lack of available child care is not merely a family issue—it is a pressing industrial concern.
As North Carolina businesses face workforce shortages, they are increasingly encouraged to take action. The report suggests several proactive measures that employers can implement, including contributions to employee child care tuition, support for emergency backup care, and investing in local child care initiatives.
Several local and state initiatives are already underway. The NC Chamber has organized a Child Care Coalition to unite business leaders to tackle these challenges and advocate for policy changes addressing child care inequities.
Public-Private Partnerships Fostering Change
Innovative partnerships between public institutions and private businesses are emerging as effective solutions. For instance, initiatives like the Tri-Share pilot project, which evenly splits child care costs among employees, employers, and the government, exemplify a collective effort to address child care shortages. Successful models from other states highlight potential pathways toward reducing employee turnover and boosting workforce participation.
With stabilization funds keeping many child care programs operational set to expire soon, it’s imperative for North Carolina to act. Legislators have recognized the crisis, allocating $67.5 million in stabilization funding and signaling intentions for further support in upcoming budget discussions.
Policy Recommendations for a Brighter Future
To remedy systemic issues plaguing the child care sector, the report recommends several policy approaches aimed at improving affordability for families, increasing pay for early childhood educators, and stabilizing existing child care programs. Strategies include expanded funding for the Child and Dependent Tax Credit, supporting wage supplements, and creating better educational pathways into early childhood careers.
The economic potential for the state is significant. The report estimates that affordable child care could contribute an additional $5.7 billion to $13.3 billion in economic output, generate between 29,000 and 68,000 new jobs, and boost the state’s GDP substantially.
Reflecting on this, one can draw inspiration from the biblical principle found in Galatians 6:2, which encourages us to “carry each other’s burdens, and in this way, you will fulfill the law of Christ.” Creating a supportive community where all families have access to child care aligns with caring for one another as advocated in scripture.
Encouragement for Collective Action
As we consider these findings, it becomes clear that resolving the child care crisis is not solely about economic improvement but about fostering a supportive society that prioritizes the well-being of all its members, especially children. The call for action is clear: we must engage in constructive dialogue, innovative partnerships, and thoughtful policy-making to ensure child care is accessible for everyone.
In a time where community and service to others are paramount, let this be an invitation to reflect on how we can contribute to nurturing a society that embodies love and care for our neighbors—through child care solutions, we can indeed build a brighter future for North Carolina.
Explore and dig up answers yourself with our BGodInspired Bible Tools! Be careful – each interaction is like a new treasure hunt… you can get lost for hours 🙂
