Why Early Learning and Care Infrastructure is Essential to a Strong Economy
Investing in early learning and care is an investment in every corner of the economy. For workers with care responsibilities, access to affordable, quality child care is essential to maximizing productivity, contributing to community resilience, and driving economic activity. When child care supports are robust, families thrive, communities are strong, and workers are freed to contribute fully to the workforce. Additionally, money that would have been absorbed by high child care costs is instead redirected into local economies, enabling spending in goods, services, and entertainment that uplifts communities and fosters economic growth.
For those in economic, workforce, and community development, the impact is clear: investments in child care support vibrant economies, empowered working families, and resilient communities. By partnering with other stakeholders, development professionals can champion initiatives that bridge gaps in early learning access, ensuring that local and regional economies benefit fully from a workforce unencumbered by care-related barriers. Investing in early learning and care is more than a support for working families; it is a keystone for economic health and long-term growth across every sector.
Tools & Resources
The Economic Role of Paid Child Care in the U.S. Part 1 Part 2 and Part 3
Child Care in State Economies Report: 2024 Update (Part 1 & Part 2)
The Many Economic Benefits of Investing in Early Childhood Education (Joint Economic Committee)
The Child Care Economy Report and Factsheet (Washington Center on Equitable Growth)
Next Steps: What Development Can Do
Embed early learning and care into Economic Development Organization (EDO) frameworks to enhance business retention and attraction strategies. EDOs play a central role in economic planning and community growth, and embedding child care infrastructure into their frameworks can elevate both business retention and talent attraction. EDOs can start by assessing current child care resources and identifying gaps that hinder economic participation. Partnering with local government agencies, businesses, and early learning providers, EDOs can develop incentives or assistance programs to help build or expand child care facilities.
Leverage federal subsidies and tax credits to improve child care accessibility and affordability for working families. Federal tax credits and subsidies, such as the Child and Dependent Care Tax Credit (CDCTC), provide opportunities to enhance child care affordability for families. Development professionals can work with businesses, local government, and child care providers to raise awareness of these benefits and assist families in accessing them. Furthermore, EDOs and workforce agencies can collaborate to secure funding to support local child care programs.
Collaborate with workforce development agencies and EDOs to provide unified child care solutions for employers.
By collaborating with workforce development agencies, EDOs can coordinate comprehensive solutions that address child care needs for employees across various sectors. Such partnerships could involve conducting needs assessments with local businesses to gauge specific care requirements or coordinating flexible child care options like shared care centers or employer-sponsored programs.
Strengthen public-private partnerships to expand child care services and address workforce shortages in the child care sector. Building effective public-private partnerships can enable communities to expand their child care offerings and address critical workforce shortages. Local governments, nonprofit organizations, and businesses can collaborate on funding and operational support for new or expanded child care facilities. For instance, companies could partner with local child care centers to subsidize costs for employees, while municipalities provide zoning support and streamlined approval processes.
Support state-level workforce development tax incentives to improve wages and retention within the early childhood workforce. Ensuring a stable and well-compensated early childhood workforce is essential to sustaining child care availability. Development organizations can advocate for tax incentives that incentivize professional growth and retention within the child care sector, such as refundable tax credits tied to training and career advancement.
Shift employer narratives to position child care as a universal workforce issue rather than a “women’s issue.” Positioning child care as a universal workforce concern encourages broader engagement from all sectors. To initiate this shift, development professionals can host workshops or forums that engage employers and demonstrate how child care challenges affect productivity and workforce stability for all.
