Screenshot: Federal Reserve Bank of Boston

The Federal Reserve Bank of Boston has just published an important article about COVID-19’s impact on child care.

“When the crisis started, some experts hoped it was a wake-up call for policymakers about the importance of accessible and affordable child care to a fully functioning economy,” the article, written by Jay Lindsay, says.

But as the article’s title — “Future of child care sector shakier than ever, a half year into pandemic” – points out, child care is still on treacherous ground.

“To better understand what’s behind and ahead, Beth Mattingly of the Federal Reserve Bank of Boston teamed up with Jess Carson from the Carsey School of Public Policy at the University of New Hampshire to address the pandemic’s impact on this vulnerable sector,” the article explains.

In an article they posted this summer, Mattingly and Carson point out that child care programs were already stretched thin before the pandemic:

“This dichotomy of high costs for families and low wages for workers derives from child care being a mostly private-pay system with limited public contributions. One outcome is high turnover as employees seek higher pay outside the industry, often in the public school system. Child care sits in stark contrast to publicly funded education, where teachers are paid significantly more than child care workers, have greater job security, and are typically offered benefits such as health insurance, paid sick leave, and retirement plans.”

Now, as child care programs struggle to follow state and federal guidelines on health and safety, they are stretched even thinner.

As the Federal Reserve article explains, Mattingly and Carson see “see four major concerns for parents and providers as the economy reopens:”

• uneven access to government assistance and loans

• worsening staff shortages

• the burden of accrued costs – including buying cleaning supplies and personal protective equipment as well as paying rent even when programs have been closed and could not generate revenue, and

• continued financial pressures that could force child care programs that have survived to eventually shut down

What can the country do?

“As the battered sector works to find a way forward, Mattingly and Carson said the solution for child care remains obvious – an increased investment of public tax dollars, similar to how school is funded in grades K-12

“Carson said the price tag may be scaring people, but that’s a case of being ‘penny-wise and pound foolish.’ The long-term benefits of a healthy child care sector and its link to a healthy and just economy are clearer than ever during the pandemic, she said.

“Mattingly added, ‘We know how to fix childcare, people have been studying this for years. There’s one way, and that’s with more money. Without increased investment, the sector is at risk.’ ”