Economic Impact of Child Care: The Ripple Effect

When we invest in early childhood education, we're not just preparing children for school—we're building a stronger, more prosperous future for Missouri.

Quality early education plays a crucial role in workforce development, economic productivity, and long-term societal outcomes. Yet, it remains an underfunded and often overlooked area. Businesses and policymakers must recognize that investing in early childhood education yields returns far beyond the classroom.

The Long-Term Benefits of Early Education

Research consistently shows that children who receive high-quality early education are more likely to:

• Achieve higher academic success
• Graduate from high school and pursue higher education
• Earn higher incomes as adults
• Avoid involvement in the criminal justice system

These positive outcomes have a ripple effect, benefiting not just individuals but entire communities.

Economic Gains for Missouri

A report from the Federal Reserve Bank of Minneapolis found that investments in early childhood education yield a return of $7 for every $1 invested. How? Through reduced social service costs, increased tax revenue, and a more skilled workforce.

For Missouri, this means:

• Reduced Employee Absenteeism: Parents who have access to reliable early education programs can remain in the workforce without frequent disruptions.
• Enhanced Workforce Readiness: Early education lays the foundation for essential skills such as problem-solving, teamwork, and communication—skills that employers value.
• Economic Stability: Communities with strong early education systems attract families and businesses, creating a positive cycle of growth.

What Employers Can Do

Employers have a unique opportunity to support early education:

1. Advocate for Policy Changes: Support initiatives that increase funding for early education programs in Missouri.
2. Partner with Educational Institutions: Collaborate with preschools and child care centers to provide resources and support.
3. Offer Child Care Benefits: Support your employees in accessing quality child care.

Missouri businesses must recognize that investing in early childhood education is an investment in the state's economic future. By supporting young learners today, we create a more skilled, productive, and prosperous workforce for tomorrow.

Let's work together to build a brighter future for Missouri—starting with its youngest citizens.

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