Poor Wages Drive Workers Out of the Sector

Excerpt from a post by The Center for Law and Social Policy

Low and stagnant wages drive child care workers out of the sector.

By: Jessica Milli

Median real hourly wages among child care workers are low and have barely increased since 1997. In addition, the current structure of most child care programs provides few opportunities for teaching staff to advance into higher-level and higher-paying roles. These persistent low wages and a lack of advancement opportunities provide little incentive for child care workers to invest in skill development, though many are often required to seek more training regardless of compensation levels.

This results in significant disparities in wages between college educated child care workers and workers across sectors,[7] and may be driving some of the decline in employment, as child care workers leave the sector for higher-paying options.[8] It is also important to note that the U.S. Bureau of Labor Statistics (BLS) data presented in this brief do not include self-employed individuals and may leave out a significant share of family child care providers who often have lower earnings and are more financially sensitive to changes in demand.[9] Inclusion of these child care providers in average wage calculations may result in lower wage estimates than those presented here.

Figure 2. Median Real Hourly Wages Among Child Care Workers by Year, 1997-2021 (In 2021 Dollars)

Source: Why Investing in Child Care Providers is Essential for Providers, Children, and Families. (n.d.). CLASP. Retrieved May 16, 2022, from https://www.clasp.org/publications/report/brief/why-investing-in-child-care-providers-is-essential-for-providers-children-and-families/?utm_medium=email&utm_source=email_link&utm_content=baby_monitor_05122022&utm_campaign=Q3_2022_Policy+Center_Resources

Child care workers are passionate about the work they do, yet turnover is exceptionally high, with some estimates suggesting that the average annual turnover rate among child care staff can be as high as 30 percent.[13] Low compensation and a lack of benefits are major drivers of turnover among child care workers… Of course, other factors such as inadequate administrative support, job stress, a lack of respect for the work they do, and other personal and environmental factors are also important drivers. For many child care workers, it would seem that passion for the work alone is not enough to surmount the financial difficulties associated with the sector’s low wages.

Find the right answers to your business challenges with our in-house Data & Analysis Services.
Our comprehensive data analytic services include child care, demographic, economic, and social data to help your business grow. We offer customized data reports, analysis, and geographic mapping to interpret and visualize data. Contact us today.

https://mochildcareaware.org/data-and-community/data-request-form/ 
Director, Data & Analysis 314-881-4657

Explore our other Child Care Aware® of Missouri resources:

FREE Clock Hour Training
Scholarships for Educators
Child Care Health and Wellness
Family Child Care Network
Leadership Development Opportunities
Missouri Office of Childhood Updates
Show Me Child Care Resources
Support Child Care Aware® of Missouri
Community Data
Join Our Team
Resources to Build Your Business