Research by the U.S Chamber of Commerce, in partnership with the Grand Rapids and Michigan Chambers of Commerce and the Early Childhood Investment Corporation produced a report titled, Untapped Potential in Michigan: How Childcare Impacts Michigan’s Workforce Productivity and the Economy. It focuses on the childcare supply and demand gaps and how they drive parents out of the workforce.
A total of 501 parents with children under the age of six were surveyed representing a cross section of racial, ethnic, and income demographics. Some key findings include among parents of children younger than six, 71% pay for childcare and families who pay for any form of childcare spend on average $672 per month. Families typically pay for childcare out of their personal budget 58% of the time. This often places an undue financial burden on the most economically vulnerable families.
The study finds that childcare-related employee turnover and absenteeism costs Michigan employers an estimated $2.3 billion per year and that leads to Michigan missing out on an estimated $576 million annually in tax revenue due to childcare issues. Add it up, and the state loses $2.88 billion annually in lost economic activity.