--- title: Child-Care Crisis Costs Economy $172 Billion Annually description: Child-care gaps cost the U.S. economy $172 billion annually, affecting workforce participation, productivity, and tax revenues. Learn about the economic impact and potential policy solutions. --- [Partner Publication | Child Care Aware of Missouri](https://partnerpublication.mochildcareaware.org/partner-publication) # [Child-Care Crisis Costs Economy $172 Billion Annually](https://partnerpublication.mochildcareaware.org/partner-publication/cd-child-care-crisis-costs-economy-172-billion-annually) Written by [Child Care Aware® of Missouri](https://partnerpublication.mochildcareaware.org/partner-publication/author/child-care-aware-of-missouri) | Mar 10, 2026, 2:18:43 AM Excerpted from: *Child-Care Crisis Costs U.S. Economy $172 Billion Annually* *By Megan Leonhardt* *Barron’s* A new economic analysis released in Barron’s highlights the staggering national cost of the child-care accessibility gap in the United States. Drawing on data from the Carsey School of Public Policy at the University of New Hampshire, the report estimates that insufficient child care for families with young children now costs the U.S. economy approximately $172 billion annually. Key Findings - $134 billion of the total cost reflects *lost earnings and reduced work participation* by parents, particularly mothers, due to child-care breakdowns. - $38 billion comes from *lower productivity and higher absenteeism* among working adults who must juggle care responsibilities. - $37 billion in *reduced federal, state, and local tax revenue* is tied to decreased labor force engagement. - Child-care breakdowns force many parents to make difficult workplace decisions: - The cost of child care itself remains high, with average annual center costs around $13,000 per child, a figure that often exceeds inflation and outpaces other household expense increases. Why It Matters Nationally The analysis underscores that child-care gaps are not just family problems; they are macro-economic concerns that depress workforce participation, limit gender equity in employment, and constrain national productivity and growth. Policy Implications - Increased access to reliable child care could: Read the full article:[https://www.barrons.com/articles/childcare-economy-cost-report-c14b6ea4](https://www.barrons.com/articles/childcare-economy-cost-report-c14b6ea4) The data you need when you need it. 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