10 Shocking Statistics About Employers, Working Families, and The Childcare Crisis

For many families, finding high-quality care is half the battle as the cost of daycares, babysitters, and nannies continues to rise. The cracks are showing. Stopgap childcare solutions are fraying. The whole thing feels unsustainable.

Drop us a note to learn how we’re addressing the childcare crisis with practical, affordable employee childcare benefit programs.

Here are ten shocking statistics about how childcare hardships are affecting working parents and employers.

1. Across the U.S., roughly 10% of childcare programs have closed, according to the Bipartisan Policy Center.

• The pandemic has caused a worker shortage in the childcare industry, making it difficult for parents to secure childcare. Without adequate and reliable care, employees with young children are less likely to return to work after parental leave.

2. On average, parents lose two hours per weekof work time (5% of their workweek).

• Whether dealing with distractions while working from home or leaving early to care for children, parents struggle to balance work-life responsibilities. Workplace burnout is linked to serious health problems and poor job satisfaction.

3. 55% of working parents have missed at least one full day of work due to childcare issues.

• Employees with young children need flexible and affordable childcare options. Employer-sponsored childcare benefits like backup care and stipends help working parents find high-quality childcare solutions for those last-minute emergencies.

4. Babysitting rates rose sharply in 2021, increasing by 11% and outpacing inflation at 7%.

• The average babysitter rate is $20.57/hr for one child and $23.25/hr for two children. 21% of families spend between $40,000 and $49,000 a year for one nanny. Employers can help cover caregiver costs by providing flexible care benefits, including a childcare stipend/subsidy.

5. Disengaged employees cost U.S. companies up to$550 billion a year.

• 54% of working parents report being distracted at work due to childcare issues. Whether working from home or in the office, many employees need childcare assistance to maximize their productivity.

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6. The cost of childcare has led to a 13% decline in the employment of mothers.

• One-third of women in the workforce are mothers. Without childcare support, 72% of working mothers experience workplace burnout, and 40% of mothers feel that their employers are not family-friendly. Overall, the U.S. G.D.P. could be 5% higher if women participated in the workforce at the same rate as men.

7. 35% of new parents who chose not to return to work after parental leave felt their childcare options were unsafe.

• Due to childcare deserts, many Americans — particularly those in low-income neighborhoods — do not have access to high-quality and affordable care. The childcare crisis is a systematic barrier for women and people of color.

8. 77% of working parents consider family-friendliness and childcare benefits their top priority when searching for employers.

• Employees are burned out and feel unsupported by their employers. Many working parents are making career changes based on their childcare needs. If employers want to attract and retain talent, offering childcare benefits for employees is one of the easiest methods to achieve this.

9. 59% of families are budgeting to spend more than $10,000 in yearly childcare costs, making childcare more expensive than college, with the average in-state tuition ringing up at $9,580 annually.

• Without childcare support from employers via employee childcare benefit programs, 84% of working parents report feeling overwhelmed by the cost of childcare, and 20% quit a job because of it.

10. Currently, the U.S. only covers 2% of the cost of childcare for working families.

• The U.S. spends 0.2% of its G.D.P. on childcare for children aged two and under. This amounts to about $200 a year for most families, in the form of a once-a-year tax credit. Without help from the government and employers, working families are left to carry the financial burden of childcare.

The current U.S. childcare system is failing families, employers, and children. Many employees are forced to leave their careers to ensure their children are safe and taken care of. Without employer-sponsored childcare benefits, most working parents simply cannot afford adequate childcare.

Learn more about how you can start supporting your working families by offering affordable employee childcare benefits.

Our organization was founded in 2017 with the mission to provide high-quality, affordable childcare to all families. We support childcare providers in operating sustainable businesses through a technology-based marketplace. Now the largest childcare network in the United States and a leader in the employee childcare benefits space, our organization is focused on solving the childcare crisis by connecting employers and families with caregivers helping to change lives, one family at a time.