Child Care: The Industry That Supports All Industries

Child care in the United States is more than a family issue—it’s a cornerstone of the economy. Dr. Sarah Vanover, author of America's Child Care Crisis and Bridging Gaps, sheds light on the systemic challenges facing the child care sector. In a recent episode of the Early Childhood Chapters podcast, Dr. Vanover discussed why child care is foundational for every industry and offered insights into how we can address its pressing challenges.

The Fragile Economics of Child Care

Child care operates on a precarious financial model unlike any other industry. “Most businesses follow the law of supply and demand, but for child care, providers can only charge what parents can afford,” Dr. Vanover explained. This creates a cycle of financial strain: as costs rise, providers reach a tipping point where families can no longer afford care, forcing some parents to leave the workforce altogether.

A significant portion of a child care center’s budget—between 50% and 85%—is allocated to staff salaries. Fixed costs such as rent, utilities, and insurance leave little room for adjustment. Without government subsidies directly supporting child care programs, “we’ve subsidized the cost of child care on the backs of our child care providers,” said Dr. Vanover.

Despite their vital role, child care workers earn lower wages than 97% of other occupations. Many struggle to support their own families and are forced to leave the profession for higher-paying jobs. “We have kids at home saying, ‘When I grow up, I want to work with kids.’ And they enter the field, only to realize they can’t support their families and have to leave,” Dr. Vanover shared.

Why Quality Child Care Matters

Child care is about much more than providing a safe space for children. It’s about nurturing their development during a critical period of growth. “Ninety percent of brain development occurs before a child enters kindergarten,” Dr. Vanover explained. “What you don’t want is a place where a child is just surviving during the day. You want a relationship-rich environment where children are learning to communicate, solve problems, and form relationships.”

This level of care requires skilled educators. However, many early childhood teachers earn just above minimum wage while performing a demanding job that includes lesson planning, developmental assessments, and classroom management. The responsibilities are extensive, yet the compensation is insufficient.

The Impact on Families and the Workforce

The challenges surrounding child care affordability create ripple effects throughout society. Families are often forced to make difficult decisions, such as one parent leaving the workforce because the cost of child care outweighs their earnings. For single-parent households, this isn’t an option, leading to significant financial strain.

Dr. Vanover highlighted another dimension of the issue: “Many families have two working parents simply for health insurance. If one parent stops working, the cost of providing health care for the family becomes prohibitive.”

The lack of accessible, affordable child care also impacts businesses. Employees need reliable care to remain in their jobs. Recognizing this, some large companies, such as Toyota and hospitals, have begun offering on-site child care to reduce turnover and attract top talent.

Potential Solutions

Solving the child care crisis requires systemic change and significant investment. Some states are leading the way with innovative programs:

•    North Carolina: Offers wage compensation programs for child care workers.
•    Washington, DC: Implements pay scales to elevate early educators’ salaries.
•    Kentucky: Provides free child care for child care workers, saving them thousands of dollars annually.

Public-private partnerships also hold promise. For example, Head Start collaborates with local child care centers, offering resources and higher per-child funding to enhance quality and support educators.

Dr. Vanover emphasized the need for broader engagement: “State economic development cabinets and education departments need to think about how they’re recruiting and training educators, and whether they’re offering incentives like scholarships or apprenticeships.”

Advocacy and Grassroots Action

While systemic reforms are essential, individuals can make a difference by advocating for child care policies. “Legislators vote on policies their constituents want. Grassroots efforts, where parents, business owners, and community leaders share why quality, affordable child care is vital to our communities and economies, are incredibly impactful,” Dr. Vanover noted.

Child Care as Infrastructure

Child care is as essential to the economy as roads and bridges. “Without child care, families leave the workforce, businesses struggle to hire and retain employees, and the entire economy suffers. We need a robust plan where the government, businesses, and families contribute to ensure child care is accessible and sustainable,” Dr. Vanover explained.

This issue is not just about providing a service; it’s about investing in children, supporting families, and strengthening the workforce. As Dr. Vanover succinctly put it, “Child care supports every other industry. Without it, our infrastructure crumbles.”

By rethinking how we legislate, fund, and value child care and its workers, we can create a brighter future for families, educators, and communities. Prioritizing the youngest members of society and the professionals who care for them is not just a moral imperative—it’s an economic necessity.

Visit Dr. Sarah Vanover's author page to see more of her titles with Gryphon House. To listen to the full interview with Dr. Sarah Vanover, listen to this episode of our Early Childhood Chapters podcast. You can find it wherever you listen to podcasts.