The child care crisis is more than a family issue; it’s a workforce and economic imperative. Child care is a proven economic force multiplier, contributing $152 billion annually to the U.S. economy. Yet, its true potential remains untapped due to systemic barriers. Without affordable and accessible child care, parents struggle to remain in the labor force, businesses face worker shortages, and local economies lose vital productivity. Recognizing these cascading effects, businesses and economic development agencies have an essential role to play in addressing this crisis.
By investing in child care solutions, businesses can ensure a steady workforce, improve employee retention, and enhance community prosperity. Economic development agencies, with their resources and networks, can amplify these efforts, fostering public-private partnerships that lead to sustainable solutions.
Across the country, innovative collaborations are making a difference. For instance, several state and local communities have adopted a “Tri-Share Model” to reduce child care expenses for families by splitting costs evenly among three parties: the employer, the employee, and the government. This approach not only makes child care more affordable but also supports workforce stability by enabling parents to remain employed and productive. Michigan, Kentucky, and Ft. Wayne, Indiana, are implementing Tri-Share Models.
Other innovative partnerships include:
- Employer Child Care Navigator – Executives Partnering to Invest in Children (EPIC) & the U.S. Chamber of Commerce Foundation: This resource for businesses includes case studies, solutions and an online questionnaire designed to support planning efforts.
- New York Business Navigator and Digital Tool Kit: This tool kit includes resources that connect businesses with child care services, strategies and action planning.
- Indiana Economic Development Corporation Grant: This is a grant to local partners to “build, operate and transfer” a new child care center in Shelby County, Indiana.
- Wisconsin Economic Development Corporation and Department of Workforce Development: This grant aims to increase the number child care slots in Door County through child care facility renovation and construction initiatives.
Topical Resources:
- National Child Care Innovation Summit: This is the first in a series of day-long summits that brought together leaders from public and private sectors to discuss the vital role of child care services for U.S. economic competitiveness.
- Child Care in the State Economies 2024: The Committee for Economic Development launched a series of reports that analyze the paid child care industry in the United States, including its impact on regional economic growth. An interactive dashboard and state by state fact sheets are included.
Discover how TCC Solutions’ early childhood data systems and services can power employer-sponsored child care innovations—contact us today!