New report shows the high cost of inadequate child care options to Massachusetts' economy — $2.7 billion to be exact – State House News Service
By Chris Lisinski
Hourly workers in Massachusetts collectively miss out on more than $1.6 billion in wages every year because of unmet child care needs, part of a roughly $2.7 billion drag on the statewide economy stemming from inadequate child care, a new report estimates.
Putting a hefty dollar figure on an issue familiar to parents across the state, the Massachusetts Taxpayers Foundation said in a report published Thursday that a shortage of early education and care slots and sky-high prices for those available punch a financial hole in the pockets of workers, employers and state government.
The business-backed foundation projected that employers lose nearly $812 million every year due to lost productivity, turnover and replacement costs when workers need to step away to care for their children, in addition to the estimated $1.66 billion in lost wages that families face.
And because of lower wages and spending, state government also collects $187 million less in taxes every year as a result of poor child care access, MTF said.
“If we are to unleash all of Massachusetts’s economic potential, we must enhance our child care infrastructure and increase accessibility in the state,” authors wrote in the report. “The future of our workforce and economy depend on it.”
The think tank’s analysts projected a significant economic boost if parents of young children who are currently not working decided to join the labor force, a step that is impossible for many families who cannot afford to place their kids into programs.