The Economic Impacts of Insufficient Child Care Cost Arizona $4.7 Billion Annually

Arizona’s working parents know how difficult it is to find child care that’s accessible, affordable, and high-quality. ReadyNation’s new study found that the lack of adequate child care imposes substantial and long-lasting economic consequences in Arizona. Effects are felt by parents, businesses, and the state’s taxpayers, with an annual economic cost of $4.7 billion in lost earnings, productivity, and revenue.

Productivity challenges affect both employers and employees, with parents reporting that problems with child care hurt their efforts and/ or time commitment at work. More than half of Arizona parents surveyed reported being late for work, leaving work early, missing full days of work or being distracted at work due to child care struggles.

These challenges had predictable impacts: one in three Arizona parents said they’ve been reprimanded and 19 percent have been let go or fired. As a result, Arizona families lose $3 billion per year in forgone earnings and job search expenses.

Meanwhile, productivity problems cause Arizona employers to lose $958 million annually due to child care challenges faced by their workforce. Arizona taxpayers, in turn, lose $725 million each year in lower federal and state/local tax revenue.

Beyond its impact on the workforce and economy today, Arizona’s child care crisis damages the future workforce by depriving young children of nurturing, stimulating environments that support healthy brain development while their parents work.

Arizona policymakers can improve the availability and affordability of high-quality child care. With wise investments, policymakers can improve life outcomes for thousands of Arizona children today and strengthen our state’s workforce and economy both now and in the years to come.