More parents say child care problems are keeping them out of work



Key Findings from the Federal Reserve Bank of Chicago's New Research on Child Care and Workforce Participation

**Core Issue:** Childcare challenges are increasingly preventing parents, particularly mothers, from joining or fully participating in the workforce.


**Impact:**

- Reduced family income

- Labor shortages for businesses

- Long-term career setbacks for parents, primarily women


**Trends:**

- Post-pandemic, child care issues are more prevalent than before, despite expectations of improvement.

- From the pre-pandemic period to present day, the number of parents affected by child care issues has increased by 19%.

- Mothers with children under five are twice as likely to face these problems as those with older kids or fathers.


**Barriers to Child Care Access:**

1. **Cost:** Childcare costs have surged post-pandemic, often matching rent expenses.

2. **Labor Shortages:** High turnover and low pay make hiring a challenge in the childcare industry.


**Political Attention:**

- Historically a Democratic issue, child care is now gaining Republican attention.

- President-elect Trump's campaign suggested tariffs as a solution, while his running mate proposed raising the child tax credit and encouraging grandparent caregiving.


**Workforce Trends:**

- Despite child care challenges, more mothers of young children have entered the workforce recently, potentially driving up demand for care.


**Employer Concerns:**

- The Chicago Fed's research was prompted by employers' complaints about hiring difficulties due to potential employees' childcare struggles.


**Methodology:**

- Researchers analyzed Census surveys from pre-pandemic, peak pandemic, and post-pandemic periods (2022-2024).

- They focused on responses from parents with children under 18 who cited childcare problems as the main reason for not working, working part-time, or missing work days.


Childcare issues are not only affecting families but also creating hiring challenges for businesses. Addressing these issues could help increase workforce participation and support economic growth.

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