Excerpted from “Cost of Child Care Increasingly Weighs on Labor Force Engagement”
Source: The Federal Reserve Bank of Kansas City
Check out the full report here: https://www.kansascityfed.org/research/economic-bulletin/cost-of-child care-increasingly-weighs-on-labor-force-engagement/
In October 2024, the Federal Reserve Bank of Kansas City reported, "Problems attaining child care have weighed on workers’ engagement in the labor force for some time. A few years ago, pandemic disruptions were the primary culprit in the lower consumption of child care services. Now, the rising cost of child care may be to blame. As wage growth moderates, higher child care costs could place added pressure on households and cause some workers to at least partially disengage from the workforce.”
The Kansas City Federal Reserve goes on to examine how escalating child care costs are affecting workforce engagement. Here are their key findings:
These points highlight the critical link between child care costs and labor market dynamics, emphasizing the need for solutions to support families and the economy. Child care is often prohibitively costly for families. While expenses in Missouri differ based on the type of child care provider, location, and child's age, this burden frequently surpasses other household costs, compelling families to choose between child care and vital necessities like housing and food.
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