The University of Missouri Extension says the state is losing $869 million annually because of childcare shortages.
The analysis shows businesses are losing the most – about $723 million annually – because of absent workers and turnover. The other major loss is state and local economies losing out on about $146 million annually in tax revenue they could otherwise collect.
“The cost to employers due to a lack of childcare access is a tangible data point that helps us better understand how this issue affects businesses and workforce development,” said Luke Dietterle, a specialist for Exceed, an MU Extension regional economic and entrepreneurial development program. “The data we’re collecting can inform ongoing conversations about solutions to Missouri’s childcare challenges.”
Most Missouri employers cite childcare shortages as their top workforce barrier. According to MU Extension’s research, the state’s childcare workforce has rebounded from the pandemic, but the demand outweighs the supply.
Two main problems with accessing childcare are the cost and worker pay. Missouri’s average cost of full-time childcare is $8,100 annually. Low wages in the childcare workforce continues to lead to high turnover.
Since the pandemic, Missouri’s childcare crisis has received attention from the state. Gov. Mike Kehoe wants the Missouri Legislature to pass a tax credit package that is designed to boost childcare access.
State Rep. Brenda Shields, R-St. Joseph, is sponsoring House Bill 269. The plan would provide tax breaks to childcare providers, donors to daycares, and businesses who help to cover the childcare costs of their employees.
MU Extension is creating a menu of options to help employers and communities improve their early childcare situation.
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