Like the rest of the nation, Arizona is experiencing a childcare crisis. Working parents face the obvious problem of being unable to find or afford quality childcare.
Did you know that it’s also a problem for businesses? In Arizona, on average, businesses lose $2,020 per working parent annually through reduced revenue and extra hiring costs, according to a 2023 study funded by the Helios Education Foundation. The study commissioned a survey of working parents of children birth to age 5 in Arizona.
The lack of accessible and affordable childcare can wreak havoc on parents’ work lives. More than half of parents report being late for work, leaving work early or being distracted due to childcare problems. Nearly two-thirds reported missing a full day of work, while 28% of parents have quit their jobs due to childcare problems. These impacts on employees also impact businesses and their bottom line.
This crisis is affecting families that need childcare to work. Working parents are a critical part of the U.S. labor supply. About 11% of workers in the U.S. have a child under age 5 at home. That translates to about 474,000 working parents with children aged 5 and under in Arizona. And 60% of young children live in households where all adults work, which means many may need childcare.
Demand Far Exceeds Supply
A recent study by the Bipartisan Policy Center showed that in our state, about 304,000 young children may need childcare, but only 230,000 childcare openings exist.
As Arizona’s early childhood agency, First Things First has been working throughout the state to bring awareness of the critical importance of early childhood investments. Ensuring babies, toddlers and preschoolers get a strong start and supporting working families are key to our state’s success. Arizona’s childcare crisis costs the state $4.7 billion annually in lost earnings, productivity and revenue. All Arizonans must understand that investing in quality childcare is investing in our future. Our state’s economic development starts with early childhood development.
So, What Can Chandler Businesses Do?
Businesses can work toward attracting top talent, especially for working families. Family-friendly benefits can help increase retention rates as businesses lose $958 million annually in turnover and productivity.
Working families need reliable and affordable childcare and their children need high-quality care so that we can prepare our next generation of the workforce. Every child, regardless of where they live or their family’s income or who cares for them, deserves great care that sets them up for success.
Investing in early childhood strengthens families, improves schools, builds a stronger workforce and boosts Arizona’s economy. Every $1 invested in quality early childhood programs yields up to $16 in returns. The earlier we act, the greater the impact — for kids, families, businesses and communities.
Lisa Cioll is a community engagement coordinator at First Things First (www.firstthingsfirst.org) and a Chandler Workforce Development Council member.
