Business leaders convene for frank talk on child care challenges and solutions aimed at strengthening the Triangle workforce

Research Triangle Park, NC – Business, community and early childhood leaders gathered on Tuesday, September 9 at Research Triangle Park to examine how North Carolina’s child care crisis is limiting workforce participation, straining employers, and costing the region an estimated $866.1 million annually.

During a Business Leader Roundtable hosted by ExCEL NC, the Research Triangle Foundation of North Carolina and the Greater Durham Chamber of Commerce, participants emphasized that child care is not simply a family issue – it is essential economic infrastructure directly affecting employers’ ability to recruit and retain workers.

The roundtable brought together business, community and early childhood leaders from across Durham, Orange and Wake counties to discuss the economic and workforce impacts, potential policy solutions, and how the business community can help drive statewide change. Kristi Maida, PhD, director of ExCEL NC, moderated.

The closed-door discussion got off to a fast start with one executive noting how much the situation had changed. Years ago, her company had done an assessment of child care availability, which came back positive. The latest assessment, however, was radically different. 

“Now,” she said, “we are in a crisis.”  

A growing economic challenge

North Carolina’s child care crisis costs the state an estimated $5.65 billion each year, including $4.29 billion in lost business activity caused by absenteeism and employee turnover.

In the Research Triangle, the economic consequences are even more striking. Businesses across Durham, Orange and Wake counties lose an estimated $667.9 million every year because of child care-related employee disruptions.

The region also misses out on an estimated $105.6 million in state tax revenue and $92.6 million in local tax revenue annually. Altogether, the child care crisis costs the three-county region an estimated $866.1 million each year.

An estimated 95,324 workers in the region are impacted by child care-related employment disruptions.

The numbers underscore how deeply child care is connected to the region’s economic competitiveness, particularly as employers seek to attract and retain workers in one of North Carolina’s fastest-growing economic centers.

Roundtable participants discussed how child care shortages and affordability challenges affect employers across industries, creating barriers for parents who want to enter or remain in the workforce.

One executive noted that a staff member missing a day because of a child care problem doesn’t just affect that person. It affects the team, the customer and the bottom line.

Businesses call for solutions

ExCEL NC convenes executives statewide to advance early childhood policies that strengthen workforce participation and economic growth. Business Leader Roundtables bring local business leaders together to discuss workforce and economic challenges, possible policy solutions, and how the business community can drive statewide change. 

“The business community has acknowledged its stake in getting this right. We can’t ask employers to compete for talent while ignoring one of the biggest barriers preventing talented people from participating fully in the workforce,” said Travis Crayton, AICP, vice president of planning and public policy, Research Triangle Foundation. “Access to quality child care is a critical piece of the puzzle. Strengthening it will help more people enter, remain in and advance in the workforce, creating new pathways to economic mobility while supporting employers’ ability to attract and retain the talent they need to grow.”

Participants recognized the child care provisions recently approved by the General Assembly and signed into law by Governor Josh Stein, including the creation of a statewide child care subsidy reimbursement floor.

The new reimbursement floor will help stabilize child care providers by bringing subsidy rates closer to the actual cost of delivering care, particularly in rural communities where many programs have operated under significant financial strain.

Business leaders said the legislation represents meaningful progress while emphasizing that continued investment in North Carolina’s child care system will be critical to meeting workforce needs and supporting long-term economic growth.

Economic modeling shows the reform could increase North Carolina’s GDP by more than $252 million, boost personal income by $161.4 million, and support approximately 4,030 jobs statewide, including more than 3,200 child care jobs.

Research shows that addressing North Carolina’s child care crisis could generate as much as $7.5 billion in additional GDP and support up to 60,000 new jobs statewide.

For the Research Triangle, participants said strengthening the child care system represents an important opportunity to remove barriers to workforce participation, support employers, and ensure the region can continue to grow.

About ExCEL NC

ExCEL NC, or Executives Championing Early Learning in North Carolina, is a coalition of business owners, entrepreneurs, corporate leaders, and community leaders advocating for solutions that stabilize the state’s child care system, strengthen North Carolina’s workforce, and create a more prosperous economy.