Hannah Robinson
If you’re reading this blog, chances are child care impacts you, oh wait, child care impacts and touches every Nebraskan. You know this already though, this is why you’re reading First Five Nebraska’s blog. Have you thought specifically about how much our economy relies on child care? Without child care, Nebraska’s economy comes to a screeching halt, which would bring increased disparity and direct losses far beyond the estimated $745 million that already occurs from insufficient options for stable, reliable child care. [1]
Without encouraging child care availability and affordability, our economy slows; without child care period, there’s economic fallout.
Child care is the ground level for economic growth
Under current conditions, it’s a given for a majority of families to have both parents working. Approximately 72% of Nebraska children under age 6 live in households where all available parents are working, according to Census data. That’s 72% of parents that Nebraska’s economy has come to depend on (who most likely depend on child care).
And there is room to grow with the current average 3% unemployment rate and 54,000 available jobs. [2] This means the economy has meaningful jobs for parents who want to be part of the workforce—jobs that could provide meaningful wages that can cover child care costs.
These 54,000 vacancies are opportunities for parents, but a lack of child care can prevent a parent from seeking one of these open jobs or pursuing training that could help with a promotion. A lack of child care is a direct barrier to economic growth.
Before the economy grows, Nebraska must build the foundation to grow on. Already, families collectively incur up to $489 million in lost income due to missed work or reduced hours, while businesses face over $234 million in losses from decreased productivity and higher employee turnover. [1]
Acute shortage in rural areas
The shortage of child care options is particularly acute in rural areas, with 91% of Nebraska counties lacking sufficient licensed child care programs to meet demand. This scarcity forces many parents, especially women and those from families with low income, to make difficult choices. Surveys indicate that 31% of parents with children under age 5 have left the workforce due to the inability to find affordable child care. [3]
Addressing these challenges requires a concerted effort from policymakers, businesses and communities to invest in and expand quality child care services, thereby strengthening Nebraska’s economic foundation and supporting its working families.
Investment in child care is an investment in economic resilience
Looking to the outcomes 20 years from now has to do with the investment made in early childhood programs today. Nebraska needs to foster a more capable and productive workforce. Research by Nobel Laureate economist James Heckman and his colleagues indicates that high-quality, comprehensive early education programs for children from birth to age 5 can deliver an annual return on investment (ROI) of up to 13%. [4] These returns stem from improved outcomes in education, health and employment as well as reduced costs in remedial education, health care and the criminal justice system.
Without child care, Nebraska’s economy stalls
If child care providers were to disappear tomorrow, so would the vibrancy of our state. Nebraska’s economy would essentially collapse without child care with a bleak outcome for the future. The math shows that our chambers of commerce, economic developers and business leaders need to come together to ensure the maintenance and growth of child care in Nebraska for the vitality of our state.
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[1] The Bottom Line: Economic Impacts of Inadequate Child Care Access in Nebraska, Bureau of Business Research, University of Nebraska–Lincoln
[2] https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor-shortage?state=ne
[3] https://nebraskacaresforkids.org/2023-statewide-survey/
[4] https://heckmanequation.org/wp-content/uploads/2013/07/F_HeckmanDeficitPieceCUSTOM-Generic_052714-3-1.pdf?utm_source=chatgpt.com
