Michigan Business Network · Michigan Business Beat | CAMW! Child Care’s Impact on Workforce

QUESTION: How does access to child care impact our workforce?
ANSWER: Affordable, safe access to child care directly impacts the workforce. The emotional,
monetary and time investment of child care and caring for dependents has an astronomical
impact on the primary caregiver’s options for work. According to the Michigan League for Public
Policy, the average cost of child care for a parent with two children in a center in Michigan is
approximately $18,600 a year. Many — in particular, women of color — are forced to make the
difficult choice to quit their full-time job or shift to part- time work to care for their children
because they simply can’t afford child care and are not offered paid time off to provide care.

QUESTION: How has the COVID-19 pandemic affected child care options for working parents?
ANSWER: According to a survey by the Michigan Women’s Commission, many caregivers don’t
feel comfortable sending their children to child care centers right now due to the COVID-19
pandemic. In addition, according to the U.S. Chamber of Commerce Foundation, two out of
three working parents have changed their child care arrangement due to COVID-19 and the
majority have yet to find a permanent solution. Many caregivers feel the safest child care
options are relying on family, home-based care — such as nannies or babysitters — or just
themselves to care for their children. These options are a privilege afforded to those with the
ability to work from home, take paid time off, who have close family nearby or enough
disposable income to afford home-based care.
Throughout 2020, the U.S. Chamber of Commerce Foundation found that 50% of parents who
had not yet returned to work cite child care as a reason. We know that the COVID-19 pandemic
has had a disproportionately negative effect on women in the workforce. A significant factor
contributing to this shift is access to safe and affordable child care. According to the National
Alliance for Caregiving in Collaboration with AARP, women are more likely to carry the burden
of housework and caregiving, which has only increased with stay-at-home and work from home
orders.

QUESTION: How can local business and leaders better support employees that are facing child
care challenges as a barrier?
ANSWER: It’s apparent that unaffordable child care and lack of support for caregivers affect the
workforce. When you have qualified people, who are eager to work but cannot earn enough to
pay for high-quality child care, they no longer participate in the workforce. Child care support
needs to be a priority for employers to sustain our local workforce.
Though there are organizations such as the Early Childhood Investment Corporation, projects
such as the MI Tri-Share Child Care Program and legislation pushing for affordable child care and
support through paid leave and fair wages, there is still much work to be done before caregivers
have access to the benefits.
Employers and fellow community leaders — we must be the ones to take an active role in
helping employees secure these services. We have the ability to influence what issues become
priorities for our country. Show your employees, and your peers, that child care for your
employees is a priority for you. Offer flexible work arrangements. Educate your employees
about their tax and subsidy eligibility. Create an FSA for your employees. Contribute to or
subsidize child care. Provide access to a care marketplace or resource and referral service.
Provide backup care options or even on-site child care. Above all else — it’s important to find
out what your employees’ needs are and find ways to support them. People shouldn’t have to
decide to leave the workforce — and a career they worked hard for — just so their child can
have safe and reliable care.