NEW STUDY REVEALS PA LOSES BILLIONS IN REVENUE DUE TO INADEQUATE CHILDCARE
March 2, 2020
A study by the U.S. Chamber Foundation, which was unveiled last week at an Early Education Summit at the U.S. Chamber, shows that Pennsylvania loses an estimated $3.47 billion annually for the state’s economy due to childcare issues that include a lack of access to quality childcare. This number includes an estimated $591 million annual loss in tax revenue as well as an estimated annual loss to Pennsylvania employers of $2.88 billion on absences and employee turnover as a result of childcare breakdowns.
PA Chamber President Gene Barr attended the summit and engaged in conversations about the report’s findings, which focused on childcare issues in Pennsylvania, Idaho, Iowa and Mississippi. Titled “Untapped Potential,” the report aims to not only show the challenges each state faces in this arena but also details opportunities in each state to unlock economic potential for states and employers.
“The lack of affordable, quality childcare is a critical component of the workforce issues plaguing Pennsylvania and states across the country,” Barr said in an official press release announcing the report’s findings. “This issue has acted as a barrier for many people to enter the workforce – leaving an entire segment of the population that is ready and able to work out of career paths that pay family-sustaining incomes. As part of the Pennsylvania Chamber’s workforce initiative, Start the Conversation Here, we are pleased to partner with the U.S. Chamber Foundation and elected officials across the Commonwealth and nation on solutions to address this workforce challenge.”
Key findings in the study that are specific to Pennsylvania included:
Childcare issues result in an estimated $3.47 billion loss annually for Pennsylvania’s economy.
Pennsylvania loses an estimated $591 million annually in tax revenue due to childcare issues.
Absences and employee turnover cost Pennsylvania employers an estimated $2.88 billion per year.
At least 55 percent of parents in Pennsylvania reported missing work due to childcare issues in the past 3 months.
Approximately four in 10 parents in Pennsylvania postponed school or a training program due to childcare issues.
The Early Ed Summit at the Chamber of Commerce in Washington, D.C. provided an outlet for workforce leaders and early education advocates to discuss the economic impact of childcare breakdowns, unique challenges faced by each state, and the role of business in solving this childcare crisis.