Affordable child care important for workers and businesses alike

February 26, 2013 at 11:04 am

FloridaToday.com ran a column yesterday by a local entrepreneur on the importance of child care to workers and small businesses. Rhonda Abrams, the president of a small business called The Planning Shop, which provides training and instruction for small businesses on developing business plans, strategies, and other topics related to entrepreneurship  writes about the crisis of child care  and the need for her workers– and the workers of other small businesses– to be able to access quality, affordable care for their children. Not only does this help out families, it also enables workers to stay at their jobs, reducing turnover and the loss of valuable employees.

This is a particular challenge for female workers. Abrams cites that nationally, 64 percent of mothers with children younger than 6 years old are in the labor force. In North Carolina,  median full-time earnings for women is $37,199, according to the American Community Survey.  Child care costs in North Carolina, however, average between $6,000 for family care to almost $9,200 at a child care center, depending on the age of the child. This is a range of 16 percent to almost 25 percent of the median earnings.

As child care costs continue to rise, parents struggle to be able to afford quality care– often having to use several different child care providers to cover a full-time work week. This is also a particularly acute problem for low-income families, for whom child care subsidies are the key to  being able to find a job and stay in a job. But as WRAL reported recently, cuts to child care funding has meant that many families will lose their subsidies.  In Wake County alone, a $1.9 million cut in funding meant that 750 termination  notices were sent to families who were receiving child care assistance for kids between 81/2 to 12 years old.

As Abrams says in her column

Small businesses all over the country lose terrific workers every day because of the lack of good child-care options, and some of the best and brightest women have dropped out of the workforce.

Ultimately, helping parents care for their children while they work is an economic development issue. It affects workers, productivity, employee turnover, and job security. It also impacts the children who are not provided a stable and quality environment during their parents’ working hours. Economic development is not just about creating jobs or growing businesses; it is also about creating the supports to workers and businesses to help make them both viable.

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Entry filed under: Economic Development, Economy, Jobs & Employment, Small Business. Tags: , , , , .

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