Child Care Breakdowns Costing North Carolina $5.65 Billion in Lost Economic Activity Each Year
Jul 18, 2024 08:28AM ● By WNC BusinessA statewide report estimates that insufficient child care availability is costing North Carolina $5.65 billion in lost economic activity each year.
The US Chamber Foundation, in partnership with the NC Chamber Foundation and NC Child, commissioned a survey of 517 North Carolina parents with children under the age of six. Survey results were then used to model an estimate of the direct financial impact of insufficient child care coverage on North Carolina’s economy.
- Child care-related employee turnover and absenteeism costs North Carolina employers an estimated $4.29 billion per year.
- North Carolina misses an estimated $1.36 billion annually in tax revenue due to turnover and absence costs stemming from child care issues.
- In total, child care issues result in an estimated $5.65 billion annual loss for North Carolina’s economy.
- 35% of parents that experienced disruptions to their employment in the past year reported leaving the workforce as a direct result of issues with child care.
- 15% of working parents are planning to leave employment over the next 12 months, 18% of women and 13% of men.
The full report is available online here.
The report is the latest in the US Chamber Foundation’s Untapped Potential series, which has previously measured the economic impact of child care breakdowns in twelve other states.
Survey results estimate how often parents are missing work or educational opportunities because of insufficient child care, which is then used to model the financial impact to the state’s economy to understand the untapped economic potential due to child care breakdowns. The results highlight the challenges facing families with young children and clearly show the need for flexible access to high-quality, affordable care.
The Untapped Potential report follows research released by the NC Chamber Foundation last year showing that child care is a nonpartisan issue and voters across the political spectrum want this to be an important priority for the state. Learn more.
Source: NC Chamber