THE CHILDCARE CRISIS

A System Under Strain

Pennsylvania’s childcare system is facing unprecedented pressure, creating widespread challenges for families, employers, providers, and the state’s economy. Rising costs, workforce shortages, and limited availability have created a cycle that burdens everyone and threatens long-term economic stability.

ECONOMIC IMPACT

  • Annual economic loss from childcare breakdowns: $6.65 billion in lost productivity, earnings, and tax revenue.

  • Employers lose $2.88 billion annually due to absenteeism and turnover tied to childcare issues.

  • Hundreds of childcare programs have closed since 2019, reducing access for families across the state.

EMPLOYER CHALLENGES

  • 81% of Pennsylvania employers report recruitment and retention challenges tied to childcare availability.

  • Childcare instability drives absenteeism, distraction, and turnover.

  • Replacing an employee can cost 50% to 200% of their annual salary, driven by recruiting, onboarding, lost productivity, and team strain.

FAMILY BURDEN

  • Average cost of center-based infant care: 13,000–15,000 per year, rivaling in-state college tuition.

  • Families spend 13–15% of household income on childcare—double the federal affordability benchmark of 7%.

  • 55% of parents reported missing work due to childcare issues.

  • 10% of parents voluntarily left a job because of childcare challenges.

  • Long waiting lists persist, with 63% of parents placed on lists that can stretch up to three years.

PROVIDER & WORKFORCE STRUGGLES

  • Providers face thin operating margins that prevent meaningful wage growth.

  • Early childhood educators earn an average of 15–16 per hour, contributing to turnover rates of 40–60%.

  • Over 3,000 unfilled childcare positions statewide.

  • Many centers rely on expensive online marketplaces to advertise open slots.

  • Revenue volatility from parent-paid tuition and delayed subsidy payments makes long-term planning difficult.

The Need for a Systemic, Market-Driven Solution

Pennsylvania’s childcare crisis is interconnected and cannot be solved by families, employers, or providers alone. A coordinated, market-driven approach is required—one that aligns incentives, stabilizes providers, reduces family costs, and helps employers retain their workforce.

Care Connect Partners exists to meet this need, offering a turnkey intermediary model that brings relief to every part of the system.