Report Details the Effects of PA Child Care Crisis on Working Mothers
A new report looks at the economic impact of gaps in Pennsylvania’s child care system on working mothers in the state.
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ReadyNation and the Council for a Strong America’s “2.4 Billion: The Annual Cost of PA’s Child Care Crisis for Working Mothers” details the amount lost in earnings, productivity, and tax revenue due to gaps in the child care system.
According to the report, the three top child care challenges for mothers are:
Access (72%)
Affordability (67%)
Quality (49%)
The survey’s data was collected through interviews with 307 mothers with children under age 5. A majority of the mothers reported high rates of disruption from child care programs due to staff shortages or closures.
Many of the mothers reported that they relied on a mix of care: more than half of working mothers use multiple, irregular, or informal arrangements for their children.
As a result of these challenges, working mothers are having a harder time in the labor market. Many said they were distracted at work, had to leave early for child care, or had their hours or work scheduled reduced due to a lack of care. A quarter of mothers reported having their pay or hours reduced by an employer, one-third said they had lost or quit a job due to child care challenges, and more than half said their career opportunities have been curtailed.
Losses Due to Inadequate Child Care
The study found that inadequate child care led to a loss of about 12% of working mothers’ earnings. As a result:
Working mothers lose, on average, $5,630 annually from unemployment, lower earnings, reduced productivity, and job search expenses.
Businesses lose $2,250 annually in reduced revenue and in extra recruitment costs per working mother.
Taxpayers lose $1,440 annually in lower federal and state/local taxes per working mother.
The full economic cost of inadequate child care for the more than 300,000 working mothers with children under age 5 in Pennsylvania was estimated at $2.4 billion annually.
To learn more, read the study in its entirety.
About
The Council for a Strong America is a national, bipartisan nonprofit that unites membership organizations - including law enforcement leaders, retired admirals and generals, and business executives - that promote solutions ensuring that the next generation of Americans will be successful, productive members of society.
ReadyNation is a group of business executives who are building a skilled workforce by promoting solutions to prepare children to succeed in education, work, and life.