The U.S. Chamber Foundation, in partnership with the NC Chamber Foundation and NC Child, commissioned a survey of 517 North Carolina parents with children under the age of six. Survey results were then used to model an estimate of the direct financial impact of insufficient child care coverage on North Carolina’s economy.
Numerous studies have highlighted the developmental benefits of high-quality childcare for young children. Children given appropriate childcare perform better in school, are less likely to drop out, and achieve higher test scores.
Access to childcare also allows parents the flexibility to pursue careers or enhance their education or vocational skills. Consequently, breakdowns in the childcare system result in valuable missed opportunities for children and their parents, who may experience disruptions to their work or education. Despite the well-demonstrated benefits resulting from high-quality childcare, families in North Carolina often struggle to access affordable arrangements for their children. This occurs to the detriment of the state’s economy.
The results of this research during March 2024 suggest that insufficient childcare availability is costing North Carolina $5.65 billion in lost economic activity each year. The report quantifies the direct economic impact due to childcare issues and builds on previous efforts to better understand the size of the childcare problem. Since 2019, the United States Chamber of Commerce Foundation (USCCF) has conducted studies in twelve states. In each state, childcare breakdowns resulted in hundreds of millions—even billions—of dollars of lost economic activity. As state leaders consider next steps to position North Carolina for continued economic success, childcare initiatives could enable the state to capitalize fully on its resources.
