At the Ashe County Regional Economic Summit, business people from across industries emphasized that child care is not a side issue, but core economic infrastructure. 

“While there are so many things to love about living and working in ‘The Coolest Corner of North Carolina,’ one issue that affects businesses, organizations, and individuals throughout Ashe County is access to affordable, reliable child care. A lack of, or lapses in, child care creates significant economic repercussions for both families and business owners, and remains a serious concern for our community,” said Kitty Honeycutt, executive director at the Ashe County Chamber of Commerce.

Since 2019, North Carolina has approximately 100,000 fewer parents of young children participating in the labor force. According to research from the NC Chamber Foundation, NC Child and the U.S. Chamber Foundation, 35 percent of parents who experienced employment disruptions reported leaving the workforce because of child care challenges.

Child care disruptions cost North Carolina an estimated $5.65 billion annually – including $4.29 billion in lost business activity due to absenteeism and turnover, and $1.36 billion in lost state revenue collections.

Meanwhile, supply is shrinking. Since 2020, the state has suffered a net loss of nearly 200 licensed child care programs, with family child care homes hardest hit. Infant and toddler care – the most expensive and least affordable form of care – represents the steepest challenge for working families. At the same time, early educators are leaving the field due to low wages and lack of benefits, further tightening capacity.

For rural communities like Ashe County, the consequences are particularly acute. 

Child care-related employee turnover and absenteeism costs Ashe County employers around $3.8 million every year. What's more: Ashe County misses out on $1.1 million lost in state and local tax revenue. This means that the child care crisis is costing Ashe County around $5 million every year in economic activity. 

Additionally, more than 900 workers in Ashe County experienced disruptions to their work because of child care issues. When child care programs close, parents leave jobs, businesses scale back, and economic momentum stalls.

ExCEL NC convenes executives statewide to advance early childhood policies that strengthen workforce participation and economic growth. At the summit, the coalition’s Executive Champions (see full local list below) highlighted two immediate, high-impact solutions:

1. Establish a statewide subsidy reimbursement floor

Setting a minimum subsidy payment statewide would give providers predictable revenue that better reflects the cost of care. Today, 95 of North Carolina’s 100 counties fall below the proposed floor, meaning nearly every county would see an increase, with some rates nearly doubling.

Economic modeling shows the reform would:

• Increase GDP by nearly $190 million

• Boost personal income by $127.8 million

• Support about 3,200 jobs statewide, including 2,500 in child care

2. Invest in child care for early educators

Providing child care subsidies for early educators would improve retention, stabilize the workforce pipeline, and ease a financial burden that exceeds $20,000 per year in some counties.

“Investing in teachers protects the entire system,” said Ashe Partnership Executive Director Kim Barnes. “If we want parents in the workforce, we need educators in the classroom.”

Research shows that addressing North Carolina’s child care crisis could generate up to $7.5 billion in additional GDP and support as many as 60,000 new jobs statewide.

ExCEL NC leaders emphasized that public investment in child care yields one of the highest economic returns of any workforce strategy, particularly for rural regions seeking to recruit employers and retain young families.

A 2023 poll commissioned by the NC Chamber Foundation found that more than 80% of North Carolina voters view improving child care quality and affordability as a smart use of taxpayer dollars, with bipartisan support for state action to expand access.

The Ashe County list of Executive Champions included: 

• Adam Younce, Human Resources Director, Ashe Memorial Hospital

• Scott Poindexter, Employee HR Manager, GE Aerospace

• Kristen Hodges, General Manager and President of Boondocks Brewing

• Kitty Honeycutt, Executive Director, Ashe Co. Chamber

• Kim Barnes, Executive Director, Partnership of Ashe

• Debbie Williams, Owner, Learning Thru Play

Source: ExCEL NC.