Over the last few years, we’ve talked about the critical staffing challenges facing early childhood programs. These challenges existed before the COVID-19 pandemic, and they got much worse during that time. Although the child care industry lost 370,700 jobs from February to April 2020, estimates from June 2024 show that the child care sector has regained that job loss. And yet, “overall availability of early care and education continues to lag far behind demand.”
If jobs have recovered in the child care sector, why are families having trouble finding providers?
We understand that many programs are stuck in a challenging cycle – they don’t have enough teachers to open all their classrooms, current wages are not enough to recruit and retain qualified staff, and they are underenrolled as a result. Many programs have completed or are considering a Change in Scope to help raise salaries, but this requires a current wage study. And, in order to balance the budget, a change in scope nearly always cuts the number of classrooms as a tradeoff to increase wages for educators.
Recent data from NAEYC show that, although staffing has returned to pre-pandemic levels, staff shortages still persist nationwide. A January 2024 survey of early care and education providers found that 53% of programs simply don’t have enough staff. What’s more, 89% of programs are underenrolled because of staff shortages, low pay (77%), and because families cannot afford the cost of care (66%).
Many child care teachers left the ECE workforce for higher paying jobs in other sectors. Compared to public school teachers, Head Start Teacher turnover is high Start and wages are low. The data bears this out: the U.S. Bureau of Labor Statistics reports that the national median hourly wage for child care workers is only $14.60. Research from the Center for the Study of Child Care Employment also shows that infant and toddler teachers are paid less than their preschool counterparts, and Black teachers are disproportionately impacted, as they work with infants and toddlers more frequently.
Further, a new report from KPMG, Crisis in childcare and the state of work in America, highlights the substantial impact that cost has on families’ ability to afford child care. Most striking, the report notes that in the last 30 years, the cost of child care and preschool rose at almost twice the pace of inflation. Child care is often cited as a reason why some parents – mothers in particular – do not work for pay.
Who is most affected and what are the economic impacts?
Alongside a rapid decline in the number of individuals working in the child care industry during the pandemic, there was also a steep decline in employment of mothers. The U.S. Department of Labor reports that from February to April 2020, mothers’ employment fell 15.7%. While the Department also reports that employment of mothers has since recovered (and for some subgroups, exceeds pre-pandemic levels), the employment rate of mothers is substantially less than that of fathers. Further, when child care issues are present, mothers are more likely to miss work or reduce from full-time to part-time hours.
As stated in a recent article by the U.S. Department of Labor, Mothers’ employment has surpassed pre-pandemic levels, but the child care crisis persists, the economic impacts of labor force and child care issues are profound.
Estimates suggest that if the U.S. had a labor force participation rate similar to Canada or Germany – countries that both have national paid leave and more comprehensive family-supporting policies – the number of women employed would increase by about 5 million and generate over $775 billion in economic activity a year. Although their employment has finally returned to pre-pandemic levels, the lack of a robust care infrastructure may continue to prevent mothers from achieving their full potential in the labor force.
What is being done to address these challenges?
During the COVID-19 pandemic, stabilization funds from the American Rescue Plan helped to keep the child care sector afloat. As these funds expired in September 2023, some states have allocated funding and taken steps to sustain the positive impacts, while others do not have the funding or leadership commitments for deep investments in early care and education.
A year ago, President Biden issued an Executive Order (EO) on Increasing Access to High-Quality Care and Supporting Caregivers. This comprehensive Executive Order is designed to support the child care workforce while increasing families’ access to high-quality, affordable care. Yet, no additional substantive funding has been allocated to support widespread changes in the child care system – either to help increase wages or lower costs.
Further, in November 2023, the Office of Head Start released a Notice of Proposed Rulemaking (NPRM) as the result of the April 2023 Executive Order. The NPRM addressed movement toward pay parity for Head Start education staff with kindergarten through third grade teachers as well as requirements for establishing a pay scale, minimum pay floor, and promotion of wage comparability within the program. The rule awaits finalization, which is expected later this year.
The push and pull between federal budget planning and actions to increase child care quality and access are likely to continue. Ongoing advocacy by organizations such as NHSA or First Five Years Fund is an important driver for change and keeps these issues in front of decision-makers.
What can programs do now to create a more sustainable staffing structure and also care for families?
Consider the status of your program’s most recent wage study. Wage studies are required by The Head Start Act, Section 623, and are an important part of a program’s continuous improvement process. The process for conducting a wage study often involves research and data collection, surveys, analysis, and compilation into a final report.
Is your program due for a new study or an update? Wage studies are an important piece of the budget planning process. As Head Start programs await further direction on a final rule that will impact compensation requirements, it is good to take stock of where your program might need help.
We encourage you to explore Foundations for Families’ Consulting Services. If your program needs assistance conducting a wage comparability study, please be in touch. Our team of consultants will work with your program to determine a process, timeline, and approach that is the best fit for your needs.
Thank you.
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