The Impact | February 2024

The Impact | February 2024

Empowering the Workforce Through Childcare Support


Empowering the Workforce Through Childcare Support: 
A Strategic Investment 


The Tucson Metro Chamber understands the undeniable link between accessible and affordable childcare and workforce productivity and retention. The economic impact of unreliable childcare will impose substantial and long-lasting consequences in Arizona. ReadyNation’s December 2023 study found that there is “an annual economic cost of $4.7 billion in lost earnings, productivity, and revenue.” Therefore, supporting childcare initiatives isn't merely a social good; it's a strategic move that benefits both employers and employees. 


The Impact of Unreliable Childcare: 

  • Reduced Workforce Participation: Lack of reliable childcare significantly hampers workforce participation, especially for women. Studies reveal that 34% of working mothers cite childcare concerns as their primary reason for leaving the workforce (McKinsey). 
  • Increased Employee Absenteeism: Unreliable childcare leads to increased employee absenteeism. Data shows parents miss an average of 24 workdays per year due to childcare issues (Employee Benefit News). Investing in childcare support can significantly reduce this burden. 
  • Lower Retention and Productivity: Offering childcare benefits can dramatically reduce turnover and boost productivity. Companies with childcare support see a 30% drop in absences and a 60% decline in turnover, accompanied by an 85% increase in productivity for parents (HR Daily Advisor). 

 

Arizona’s Childcare Challenges 

 

Unfortunately, Arizona’s current child care system does not meet the needs of families or employers. Access is extremely limited; 48% of Arizona residents live in areas where there are more than three children (under age 5) for each available childcare slot. Affordability is almost non-existent; infant care in Arizona averages $14,040 per year, more than the cost of in-state public college tuition. And quality childcare is difficult to establish; due to limited resources, First Things First cannot enroll all providers who want to participate. 

The Economic Argument for Childcare Support: 

Cost vs. Income: Many parents make the difficult decision to leave the workforce when childcare costs outweigh their income. Childcare support can tip the scales in favor of continued employment. 

Return on Investment (ROI): Investing in childcare yields substantial returns. Employer-supported childcare offers an 80% improvement in recruitment, a 35-60% reduction in turnover, a 20-30% decrease in absenteeism, and an 85% boost in parental productivity (Employee Benefit News). 


Policies in Practice 

Leading states like Washington have implemented impactful initiatives like the Child Care Subsidy Program and the Fair Start for Kids Act, investing over $1 billion to increase affordability and accessibility. Minnesota focuses on empowering early childhood educators through programs like Empower to Educate, offering valuable benefits like free training, stipends, and mentorship. 

Your Tucson Metro Chamber's Role: 

We advocate for similar policies in Tucson. We facilitate discussions, partner with childcare providers, and encourage businesses to adopt family-friendly policies, fostering a more inclusive and productive work environment. 

Join us in supporting childcare initiatives! Your advocacy can make a real difference. Contact your local officials and encourage businesses to invest in childcare support. Together, we can build a stronger, more equitable, and prosperous community for everyone. 


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