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Report: Child Care Is a Hidden Engine of the US Economy

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Access to affordable, reliable child care remains elusive for millions of Americans. In fact, the average annual cost of care hit $11,582 in 2023—more than the annual tuition of public colleges in many states.

To increase availability, a new report from the Committee for Economic Development (CED), the public policy center of The Conference Board, calls for robust, multipronged solutions to support the ECE sector and, in turn, the broader economy.

The report makes clear that families face steep barriers to accessing high-quality early care and education—from unaffordable costs to limited supply—with economic consequences:

  • High cost: In 45 states and DC, child care for two children exceeds average mortgage payments.
  • Child care deserts: 60% of rural families live in “child care deserts.”
  • Staffing shortages: High staff turnover—averaging nearly 15% annually—limits supply, with low wages contributing to chronic vacancies.
  • Reduced working hours: In May 2025 alone, 1.4 million part-time workers reported that inadequate child care forced them to reduce their working hours.

“Child care isn’t a luxury—it’s the essential backbone of a thriving economy and a public good. It adds $152 billion to the economy and supports 2.2 million jobs,” said David K. Young, President of CED. “When we shore up early care and education, we not only improve outcomes for children, but empower parents and increase the level of workforce participation. We need action from both policymakers and employers to make it happen.”

Stakeholders at the federal, state, and local level should:

  1. Preserve and strengthen federal and state investments that expand ECE access.
  2. Integrate ECE resources into economic and workforce development strategies.
  3. Expand innovative public-private partnerships and encourage employer involvement.
  4. Stabilize and bolster the child care sector by strengthening the ECE workforce and upholding quality standards.

About The Conference Board

The Conference Board is the member-driven think tank that delivers Trusted Insights for What's Ahead®®. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501(c)(3) tax-exempt status in the United States. ConferenceBoard.org

The Committee for Economic Development (CED) is the public policy center of The Conference Board. The nonprofit, nonpartisan, business-led organization delivers well-researched analysis and reasoned solutions in the nation’s interest. CED Trustees are chief executive officers and key executives of leading US companies who bring their unique experience to address today’s pressing policy issues. Collectively, they represent 30+ industries and over 4 million employees. ConferenceBoard.org/us/Committee-Economic-Development

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