--- title: Strategies for supporting employee child care needs 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. image: https://partnerpublication.mochildcareaware.org/hubfs/Small%20business%20strategies%20for%20supporting%20employee%20child%20care%20needs.png --- [![Child Care Aware of Missouri Logo](https://partnerpublication.mochildcareaware.org/hs-fs/hubfs/Child%20Care%20Aware%20Logo%20(1).png?width=666&height=414&name=Child%20Care%20Aware%20Logo%20(1).png "Child Care Aware of Missouri Logo")](https://partnerpublication.mochildcareaware.org/partner-publication) Open main menu Close main menu [Community Data](https://partnerpublication.mochildcareaware.org/partner-publication/tag/community-data) # Strategies for supporting employee child care needs [Child Care Aware® of Missouri](https://partnerpublication.mochildcareaware.org/partner-publication/author/child-care-aware-of-missouri) [Share this blog post via Email](mailto:?subject=%3Cspan+id%3D%22hs_cos_wrapper_name%22+class%3D%22hs_cos_wrapper+hs_cos_wrapper_meta_field+hs_cos_wrapper_type_text%22+style%3D%22%22+data-hs-cos-general-type%3D%22meta_field%22+data-hs-cos-type%3D%22text%22+%3EStrategies+for+supporting+employee+child+care+needs%3C%2Fspan%3E&body=I+found+this+interesting+blog+post%3A+https://partnerpublication.mochildcareaware.org/partner-publication/cd-strategies-for-supporting-employee-child-care-needs) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://partnerpublication.mochildcareaware.org/partner-publication/cd-strategies-for-supporting-employee-child-care-needs) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://partnerpublication.mochildcareaware.org/partner-publication/cd-strategies-for-supporting-employee-child-care-needs) ![](https://partnerpublication.mochildcareaware.org/hubfs/Small%20business%20strategies%20for%20supporting%20employee%20child%20care%20needs.png) A descriptive summary of: Small business strategies for supporting employee child care needs By Brittany Birken, Sarah Ann Savage February 3, 2026 (From Fed Communities, a collaboration among the 12 Reserve Banks of the Federal Reserve System) The article examines how small businesses in the United States support employees’ child care needs, a major factor influencing labor force participation, job retention, and business productivity. Although nearly 34 million small businesses employ almost half of private sector workers, they face financial and administrative barriers that make offering child care benefits more difficult than for large firms. Why Child Care Matters for Small Businesses Child care challenges affect not only working parents but also employers struggling with staffing. In 2024, 13% of civilian workers were parents of children under age six, and these workers are spread across businesses of all sizes. Yet smaller firms generally have fewer resources to offer benefits, including child care supports. Financial constraints are significant: 56% of small businesses reported difficulty covering operating expenses in 2024, limiting their ability to invest in additional benefits. Types of Employer-Supported Child Care Child care supports tend to fall into three categories: 1. Offsetting costs (e.g., stipends, reimbursements, Dependent Care FSAs) 2. Helping families find care (via informational tools or referrals) 3. Reducing reliance on paid care (flexible schedules, telework, infants-at-work programs) Large firms offer these benefits more often. In 2024, 25% of workers at large firms had access to reimbursement for child care costs, compared with 10–12% at most small firms. More resource-intensive options, such as onsite or backup care, are rare among small employers. Strategies Small Businesses Use Through case studies nationwide, the article highlights four practical strategies used by smaller employers: 1. Information & Referrals 2. Flexibility 3. Financial Stipends/Subsidies 4. On- or Near-Site Child Care via Partnerships Conclusion While small businesses face structural limitations, they can still meaningfully support employees’ child care needs through creative, flexible, and collaborative approaches. These supports help strengthen worker retention, boost local economies, and reduce labor force barriers for parents. You can read the full article here: [https://fedcommunities.org/research/small-business-strategies-supporting-employee-child-care-needs/](https://fedcommunities.org/research/small-business-strategies-supporting-employee-child-care-needs/) --- The data you need when you need it. 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