As policymakers talk about another economic stimulus package they might want to review a Canadian study that suggests the child care industry is one of the more powerful forces in the economy, generating jobs, spending and work.
Child care helps the economy because it has the highest employment multiplier among top industries, its low-paid workers are more likely to spend than save compared to those who earn higher pay and it helps mothers work, according to the report released by the Ontario-based Child Care Human Resources Sector Council.
To put it more simply, the child care industry generates $2.54 in benefits – known as estimated net present value of benefits – for every dollar invested in early childhood education and care (ECEC), the report found.
“By all measures, the ECEC sector provides one of the largest—if not the largest—boost to short-term economic activity of all the major sectors of the economy through direct, indirect, induced and mothers’ workforce participation…” – Executive Summary, Literature Review of Socioeconomic Effects.
What does this mean for the United States?
Legislators may want to look at child care funding if they want to give the U.S. economy another shot in the job-creating arm.
- Understanding and Addressing Workforce Shortages in the ECEC Sector: – Executive Summary, Literature Review of Socioeconomic Effects.
– Full report, Literature Review of Socioeconomic Effects and Net Benefits.
Health Care Reform: With Congress still considering legislation to overhaul the nation’s health care system, a new report, “Children in Health Reform: Comparing CHIP to the Exchange Plans” from First Focus, was released this month. Summary.