20% of Employers in North Carolina Cite Child Care Shortages as Hiring Obstacles

In North Carolina, the ongoing child care crisis is making it increasingly difficult for businesses to find suitable workers. A recent report reveals that a staggering 20% of employers in the state cite childcare access as a key barrier to recruitment, highlighting a significant challenge in both the labor market and economic landscape. This enlightening study emerged from collaboration between the North Carolina Department of Commerce and NC Child, a nonprofit organization dedicated to improving the lives of children and families throughout the state.

The report, released just this month, underscores a troubling trend: approximately 100,000 working-age parents with young children are absent from the labor force in 2023 compared to 2019. This decline can be linked to various factors, but the rising costs and limited availability of child care services stand out as primary culprits.

Currently, North Carolina parents are facing skyrocketing child care expenses, with annual costs for a single toddler amounting to about 19% of the state’s median household income. This substantial financial burden places child care out of reach for many families, forcing parents—predominantly mothers—to make difficult decisions about their careers and work-life balance. When parents cannot find affordable care, many are left with no choice but to leave the workforce, which has cascading effects on the economy.

More troubling is the research’s predictions regarding workforce participation: If child care was more accessible and affordable, the study estimates that up to 68,000 more parents would be actively participating in the labor market. This increase could potentially add a remarkable .5 billion to North Carolina’s Gross Domestic Product (GDP). Such figures highlight not only the urgency of addressing child care accessibility but also the potentially vast economic benefits of investing in effective child care solutions.

This child care crisis resonates with wider national trends, as many states grapple with similar issues. Across the United States, high child care costs, combined with limited options that often do not offer flexible schedules, have created a daunting environment for working parents. In North Carolina, local businesses are feeling the pinch; many report having to turn down contracts or projects due to a lack of sufficient staff, a direct consequence of the shrinking workforce spurred by child care challenges.

Moreover, the lack of affordable, reliable child care disproportionately affects women, often forcing them to reduce their hours or exit the workforce altogether. This gender disparity in workforce participation not only impacts families but also has broad implications for economic growth and community development. Businesses benefit from a diverse and fully represented labor force, and the current child care crisis is stifling that potential.

In response to these challenges, there have been calls from advocates and policymakers for urgent reforms and investments in child care systems. Solutions may include increasing funding for child care assistance programs, expanding eligibility criteria for subsidies, and providing incentives for businesses to offer on-site child care or flexible work arrangements. These strategies aim not just to alleviate immediate concerns but also to foster a more robust economic environment where all families can thrive.

As North Carolina contemplates the path forward, it is vital that discussions center around innovative approaches to creating a sustainable child care infrastructure. Addressing the child care crisis is not merely a matter of convenience for families—it’s an economic imperative that has the potential to unlock significant workforce participation, enhance productivity, and ultimately contribute positively to the state’s economy.

The findings of this recent report serve as a clarion call for stakeholders across sectors to recognize the symbiotic relationship between child care access and economic vitality. The time has come for concerted action and collaboration to ensure that North Carolina not only retains its current workforce but also empowers families to participate fully in the economy, paving the way for a brighter, more prosperous future for all.

As we move forward, let’s continue to engage in conversations about the importance of child care, advocate for necessary reforms, and support initiatives that prioritize both families and the economy. Only then can we begin to tackle the systemic issues that influence our workforce and create a thriving society for future generations.