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People often complain about the exorbitant costs of daycare, but for those who actually pay for it, the reality is even more shocking: daycare can cost more than a year at a public university. For instance, a mother in Boston highlighted in Time pays more for her toddler’s daycare center than she would for tuition at the University of Massachusetts—this was before the pandemic. The financial burden of childcare can overwhelm families, especially dual-income households, and it’s even tougher for single parents living paycheck to paycheck. As for childcare workers? They are facing a grim situation.
Picture a job where you are tasked with keeping four to five toddlers from interacting too closely. You constantly risk exposure to Covid-19, while juggling the need to enforce rules, encourage positive behavior, manage potty breaks, serve snacks, clean up messes, sing songs, and maintain a cheerful demeanor—all without any meaningful breaks. You also spend your time sanitizing everything. And for this demanding role, you’re compensated with an average hourly wage of $11.65, which is the median salary for childcare workers in the U.S. There’s a good chance you won’t receive healthcare benefits. Meanwhile, a nearby fast-food restaurant might pay $14 an hour.
“The pay is absolutely inadequate for the responsibilities,” said Lisa Anderson, a former childcare worker who left her job last June. “I simply cannot afford to live independently while working in childcare.” Many childcare professionals find themselves needing additional jobs to make ends meet; even before the pandemic, ten out of fifteen staff members at a daycare center in Iowa reported requiring a second job to survive.
Daycares Can’t Just Raise Salaries
The solution seems straightforward: childcare workers deserve higher pay, so let’s raise their salaries. In a fair market, that would happen. However, daycares cannot simply hike their prices. Last year, 57% of American families spent over $10,000 on childcare, and 59% planned to do so again in 2021. The average weekly cost for toddler daycare stands at around $340, with families typically spending 13% of their income on these services. Childcare workers are among the lowest-paid professions, ranking in the bottom 2%.
This situation becomes clearer when considering that providing care costs money. If you want someone to engage with your child, keep them safe, and maintain cleanliness, you must pay them adequately. Yet, if these workers were compensated fairly, the financial burden would be unsustainable. The American Center for Progress estimates that in Iowa, pre-pandemic expenses for infant daycare were $25,863, compared to a pre-pandemic cost of $9,967. If families had to pay the actual costs of infant care, birth rates would plummet.
Daycares already operate on razor-thin margins, with worker salaries comprising 60%-80% of their operational costs, which have already reached their limits for many families. A pandemic study found that staffing costs accounted for a staggering 80% of a daycare’s budget; raising wages would simply lead to increased fees.
In the past year, an alarming 94% of parents have reported cutting childcare costs by reducing work hours, switching jobs, or leaving the workforce entirely. For low-income families, this is often not an option, leading them to seek unlicensed in-home care, which can be risky. Scary tales abound.
If daycare centers increase salaries to attract more staff, they must consequently raise their fees, period. Yet centers are not seeking “better” workers; the number of childcare workers has decreased by 126,700, which is over 10% of pre-pandemic levels. They only want enough employees to keep their doors open.
No one is willing to endure such demanding work for minimal pay. The median salary, according to the Labor Department, is below the poverty line for a family of four.
“I earn $11 an hour, and I’m beyond exhausted,” confided one worker during a break. “My credit card debt is piling up, and my savings are almost depleted. I don’t see a light at the end of the tunnel … I stay because I love the kids. It breaks my heart to think about finding a new job.”
Daycares Are Shutting Down — With Serious Consequences
Diane Ellis, executive director of the Pennsylvania Child Care Association, put it bluntly: “Parents are searching for childcare, but it’s a catch-22. We lack the staff, which means we can’t open the classrooms, so families can’t return to work because they can’t find reliable childcare.”
Daycares must adhere to specific child-to-adult ratios that vary by state. When staffing shortages prevent these ratios from being met, centers must either stop accepting more children or shut down entirely. For example, Texas Klondike Academy in Texarkana had to close due to insufficient staffing. “With the current labor market’s challenges, we simply can’t find the personnel we need to operate,” said Pamela Reynolds, interim director and co-owner.
“I worry my kids won’t have a place to go,” she lamented, knowing many of her children likely faced uncertainty in their childcare arrangements. Since the start of the pandemic, 1.8 million women have exited the workforce, and while there are various contributing factors, childcare is a significant one.
We Need More Support
While the American Rescue Plan included $39 billion for childcare relief, aimed primarily at struggling centers, only 14 states have managed to mobilize enough resources to enable providers to apply for assistance. Moreover, this is merely a temporary solution. It won’t sufficiently raise wages, merely allowing centers to purchase PPE and delay potential crises for a few months.
We must not allow our childcare workers to flee to better-paying jobs at fast-food chains or retail stores. Children require consistent, dependable caregivers, particularly those from low-income families who face numerous challenges. If we compensated childcare workers at rates comparable to kindergarten teachers—complete with health and retirement benefits—we could ensure the quality of care crucial for children during their formative years. Jordyn Miller, owner of a childcare center in rural Maine, emphasized the need for substantial public investment to keep centers operational: “Relying solely on tuition from families is no longer viable.”
President Biden has proposed a significant investment in childcare, aiming to “reduce costs for lower and middle-income families,” “offer higher wages to caregivers,” and “provide free kindergarten for 3- and 4-year-olds.” However, even some Democrats oppose this initiative. Senator Joe Manchin III from West Virginia, who appears to be disconnected from the realities of working families, stated, “It’s not the federal government’s duty to educate all our children.”
Then who, Joe? Should we entrust that responsibility to Sesame Street? With parents now juggling remote work while managing childcare, it seems that the situation is increasingly chaotic.
For more insights on related topics, you might find our discussion on home insemination interesting, alongside resources from Make a Mom that provide useful information on home insemination. The CDC also offers excellent guidance on pregnancy and home insemination.
Summary:
The childcare sector is facing a severe crisis as workers leave their jobs due to low wages and high demands. Despite the rising costs of daycare, which can exceed public university tuition, the system is unable to compensate workers fairly, leading to staffing shortages and closures. Parents are struggling to find reliable childcare, and many women have left the workforce as a result. Significant public investment and policy changes are essential to ensure that childcare workers receive salaries that reflect the importance of their roles and to maintain the quality of care that children need during their critical development years.