One of the biggest problems impacting the growth of America’s economy is childcare.
Every day, women are leaving their jobs because they cannot access affordable childcare. With fewer women in the workforce, our economy suffers. This also impacts the lifetime earning potential for women.
We must work together to create better opportunities and smarter policies for women and families. No matter if you’re a Democrat, Republican or someplace in between, childcare is impacting everyone.
At United WE, our solutions are always rooted in data. We know to create sustainable, nonpartisan policies to improve the childcare crisis, we must know more about the issue.
We spoke to more than 800 women across Kansas and Missouri over the last year and found that women are spending more than 30% of their income on childcare - often the monthly cost is higher than their mortgage. According to U.S. Department of Health and Human Services, childcare is considered affordable if it consumes no more than 7% of one’s income.
Across both states, more than 700 childcare providers closed during COVID with no plans to reopen. Many of the centers that do exist are still struggling to stay open, meet licensing requirements and pay a living wage. The childcare system is broken and we must stand up to fix it.
“I remember sitting down to look at our taxes and realizing we’d paid more in daycare than we had for our mortgage,” one Missouri Town Hall attendee shared with United WE.
"I know if I have another child I won't be able to keep my job due to childcare expenses,” said one Kansas Town Hall attendee.
In November we held a webinar with McKinsey & Company to discuss the 2022 Women in the Workplace research, which shows that gender diversity on executive teams is strongly correlated with better economic performance across industries. Unfortunately, access to childcare impacts women disproportionately to men in the workplace. More often than not, responsibility for caregiving and housework fall on women at all employment levels from entry level to c-suite. In fact, women leaders are four times as likely as men at their equivalent working level to be responsible for family’s housework and childcare responsibilities. Improving access to childcare is not just an issue for women in Kansas and Missouri, but across the country.
One key piece of the childcare crisis is occupational licensing. By increasing licensed providers, the ongoing demand for childcare can be met with more adequate supply. Currently, the data surrounding childcare lack an emphasis on understanding the licensing barriers. I am pleased to share that thanks to the Ewing Marion Kauffman Foundation, we are starting a two-year national research project evaluating childcare licensing. With this initiative, we’ll gather more data necessary to inform policy change in the Midwest and throughout the nation.
We will:
Conduct state-by-state research to develop a baseline of licensing requirements, certifications and barriers.
Conduct a nationwide survey of mothers who are entrepreneurs, so that we better understand their challenges in a post-COVID-19 environment.
Convene a Women’s Entrepreneur Childcare Task Force of women-owned childcare providers and mothers who are entrepreneurs from multiple states to help us review the research and develop recommendations.
Educate and advocate for policy change by sharing the research and recommendations from the actions above to convene and educate elected officials, policymakers, community and business leaders, and thought leaders about the barriers and creative solutions to reduce onerous licensing barriers and help address the childcare crisis for women entrepreneurs.
With this research project, we will develop solutions that align the need for childcare workers with the barriers that exist to meet this demand. According to a McKinsey Global Institute study, women can boost the Missouri and Kansas economy each by 10-15% by 2025 if given the option to fully participate in the workforce. We must understand the issues and advocate for meaningful change to improve opportunities for women.
One critical piece in addressing the childcare demand is developing policy recommendations at the city, county and state levels to improve access to quality care. We also must develop policies and an emphasis on childcare in our workplaces. I invite you to unite with us and incorporate childcare considerations into your 2023 workplace conversations and policies. Share our research with your employer and human resource directors. Talk with your friends and family about it. It will take all of us, united, to meet this crisis.
United WE is an acclaimed, solutions-focused, nonpartisan thought leader on economic issues that affect all women and families. To learn more about United WE, visit www.united-we.org.