And, not surprisingly, rising childcare costs are even impacting family planning with 35% reporting they’re less likely to have more children, and 43% citing the rising cost of childcare as the main reason.Ĭhildcare costs have been on the rise for some time, but the pandemic sparked greater increases in a two-year period than have occurred since 2015. Families are reducing budgets for vacations and travel (51%), leisure activities (51%), food and dining (45%), clothing (41%), and extracurriculars (37%). However, nearly all families are scaling back with 91% of respondents reporting having trimmed at least one item to pay for increased childcare costs. When it comes to consumer spending, the majority of families (68%) budget for childcare costs and nearly two-thirds (65%) say they will stay within or under budget.
On the work front, of the parents surveyed, 31% are considering taking on a second job, 26% reduced hours at work, 25% have changed jobs, and 21% have left the workforce entirely. Parents are adjusting significant aspects of their lives to accommodate rising childcare costs, moves that have a broader economic impact. We’ve all seen what happens when parents can’t work making childcare more affordable and accessible has to be a priority for all."ĬARE.COM 2022 COST OF CARE SURVEY INSIGHTS "Costs are growing while availability is shrinking and that’s having a profound impact on the workforce and consumer spending. "When it comes to childcare, there are three critical criteria – cost, quality and availability – and based on our research findings, we’ve not only failed to make progress as a country, we’ve actually gone backwards," said Natalie Mayslich, President, Consumer,. This increase in costs has caused a quarter (25%) of parents to change jobs, slightly more than a quarter (26%) to reduce their work hours and is a likely contributor to causing millions of women to leave the workforce over the course of the pandemic. The ninth annual Cost of Care survey from, the world’s largest online destination for finding and managing family care, reveals that 58% of families plan to spend more than $10,000 on childcare this year compared to 45% pre-pandemic in 2019.
These expenditures are also having a domino effect on the economy with families working, saving, and spending less. According to the 2022 Cost of Care survey, 51% of families spend 20% or more of their annual HHI on childcare in 2021, up from 31% of families in 2019, and 72% spending at least 10% of their HHI on childcare, up from 70% in 2019. Department of Health and Human Services considers childcare affordable at a reported 7% of annual household income (HHI), but that bears little correlation to what parents are actually spending. Rising costs impact consumer spending and employmentĪUSTIN, Texas, June 15, 2022-( BUSINESS WIRE)-The U.S.
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