What do many parents need to get a job?
Child care.
But too often this need is ignored. And a study done in Louisiana has found that unmet child care needs generate a $1 billion loss for the state’s economy.
The study is the first of its kind to be conducted in Louisiana, and its results point to issues we talk about here in Massachusetts every day, including: child care costs, access, and workforce needs.
“To date, we have been unable to locate Louisiana-based studies of how child care instability affects the state’s workforce productivity,” according to the study report, “Losing Ground: How Child Care Impacts Louisiana’s Workforce Productivity and the State Economy.”
“This study attempts to address this gap.”
The report was released by the Louisiana State University Public Policy Research Lab, the Louisiana Policy Institute for Children, Entergy, and Loyola University New Orleans.
One key question that researchers asked parents of children age 4 or younger:
In the last 12 months or since the birth of a child, have you or anyone in your family had to quit a job, not take a job, or greatly change your job because of problems with child care? On a national survey that focused on children’s health, 12.2 percent of Louisiana residents said, yes. On a state survey that focused specifically on child care challenges, 20.9 percent of residents said yes.
The report says that more than 40 percent of people who responded to a statewide survey report “missing work due to child care issues over the past 3 months, and nearly one-third of respondents reported being late to work at least once over the past 3 months.”
“Just over 42% of respondents reported that they left work early due to child care issues at least once during the past 3 months.”
The report estimates that child-care-related absences generate $292 million worth of losses. And the cost of parents quitting and staff turnover is an estimated $875 million – a total of almost $1.2 billion. There’s also $84 million in lost tax revenues.
One solution?
Increase investments in high-quality child care.
“Investments can come in the form of public or private funds. An infusion of state or local funds in early care and education would ultimately have a high rate of return through reduced costs to employers, increased earnings and tax revenue from parents, the economic impact of the child care industry itself, and improved outcomes for children,” the report says.
In addition: “individual businesses may opt to invest money into child care through direct subsidies to employees or investment in local child care agencies.”
In a press release, Melanie Bronfin, the director of the Louisiana Policy Institute for Children, says:
“If Louisiana is serious about providing its businesses with a greater economic advantage over their out-of-state competitors, the return on investment of quality child care funding becomes very clear. Improved productivity, as well as educational and societal outcomes, are a proven result of quality early child care.”
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