The Economic Impacts of Insufficient Child Care Cost Washington State $5 Billion Annually

A new study by ReadyNation and Child Care Aware found that the lack of adequate child care for young children (birth through five) imposes substantial and long-lasting economic consequences in Washington. These effects are felt by parents, businesses, and the state’s taxpayers. Washington experiences an annual economic cost of $5 billion in lost earnings, productivity, and revenue.

The impact rises to $6 billion when estimating the economic costs of inadequate child care for Washington children birth to 12.

Productivity challenges affect both employers and employees, with parents reporting that problems with child care hurt their efforts and/ or time commitment at work. Eighty-six percent of Washington 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: 3 in 10 Washington parents said they’ve been reprimanded by a supervisor and 25 percent have been let go or fired by their employer. As a result, Washington families lose over $1.3 billion per year in forgone earnings.

Meanwhile, productivity problems cause Washington employers to lose $2.8 billion annually due to child care challenges faced by their workforce. Washington loses approximately $974 million each year in lower federal and state/local tax revenue.

Beyond its impact on the workforce and economy today, Washington’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.

Washington policymakers must support research-based policies and investments that enhance the availability and affordability of high-quality child care. With wise investments, policymakers can improve life outcomes for thousands of Washington children today and strengthen our state’s workforce and economy both now and in the years to come. Maintaining quality, increasing access, and creating more learning spaces are key so that working families have the child care they need. Additionally, ensuring living wages for the early learning and education workforce is also critical.