Child Care Crisis Exacerbating the Labor Shortage

Underemployment in the day care industry prompting parents to remain home

March 3, 2022

The cleaning industry depends on its workers, many of whom are women who rely on child care. A new report published by Wells Fargo economists this week found that nearly half a million American families are estimated to be stranded without adequate child care, CNN reports. The lack of child care is leading many parents to stay home, worsening the nation’s labor shortage.

“Access to child care has been shown time and again to boost labor force participation among mothers,” the report authors wrote. “For employers struggling to find workers now and facing a future of dismal labor supply growth, improving childcare options for parents means a larger and more experienced workforce to draw upon.”

Child care service employment levels are 12.4% below pre-pandemic level, compared to a total employment deficit of 1.9%. By Wells Fargo’s estimates, that leaves about 460,000 families scrambling to find reliable, long-term child care.

The report found that if the labor force participation rate for women with children younger than 3 years of age equaled that of women with school-aged children (ages 6 to 17), the labor force would gain 1 million more workers. Women with children younger than 3 have a 28% lower labor participation rate than men with children under 6. (Men with children under 3 are not currently tracked by federal employment data.) 

Health risks associated with the ongoing coronavirus pandemic and low pay are persistent barriers affecting child care employment levels. In 2020, the average pay for a day care worker was below US$12.25 per hour, making it one of the lowest paid occupations, according to the U.S. Bureau of Labor Statistics. The average child care industry worker earned about $25,060 in 2020. Many child care workers are minorities and immigrants, whose low pay keeps them in a cycle of poverty.

Federal support can provide needed resources to the child care industry. Direct federal spending on day care and early education totaled about $29.7 billion in 2021, up from $20.6 billion in 2019, according to the report. The amount of federal child care spending in 2019 was less than 4% of spending by the U.S. Department of Defense and 3% of the U.S. Centers for Medicaid and Medicare, the economists noted.

Latest Articles

Target graphic
July 24, 2026 Jeff Cross

Growing Faster but Making Less? Here’s Why

July 23, 2026 Jeff Cross

Your Employees Are Using AI. But Are They Still Thinking?

July 22, 2026 Kennedy Moreno

Employee Retention Goes Beyond Financial Compensation

Sponsored Articles

New Technology Platform Targets the Hidden 90% of Cleaning Budgets
July 16, 2026 Sponsored by Optisolve

New Technology Platform Targets the Hidden 90% of Cleaning Budgets

July 7, 2026 Dr. Rebecca Bascom & Dr. Gavin Macgregor-Skinner & Dr. Omrana Pasha-Razzak

Evidence-Based Cleaning Ensures Healthy Places and Spaces

July 2, 2026

D.A.R.E. to Clean Restrooms Smarter with Tornado

Recent News

Over Half Would Stop Using AI if it Required Payment

Over Half Would Stop Using AI if it Required Payment

Register Now for CMM’s Webinar: Solutions to Top Restroom Challenges

Las Vegas Cleans Up the Strip