FOR IMMEDIATE RELEASE: Thursday, July 10, 2025
CONTACT: Christina Johnson
Tallahassee, Fla. – Today, Florida TaxWatch released How Childcare Costs Impact Florida’s Economy updating its July 2022 briefing entitled How Childcare Impacts the State’s Economy and Shapes Florida’s Workforce, which outlined the importance of childcare in workforce participation rates and concluded that Florida’s economy loses more than $1.5 billion per year due to absenteeism and more than $5.6 billion in income. Today’s report further explores the effects of childcare on workforce participation and childcare costs and reports that Florida’s economy loses more than $3.3 billion per year due to absenteeism and more than $9.8 billion in income.
Florida TaxWatch President and CEO Dominic M. Calabro said, “Florida TaxWatch’s briefing from July 2022 to today’s update shows an increase of $1.8 billion in economic losses due to employee absenteeism and $4.2 billion in income loss, both of which may be attributed to a lack of available and affordable childcare. Access to quality childcare is so very important for several reasons; it has proven direct development benefits for the children; it boosts workforce participation from the parents; it increases productivity in the workplace; it reduces turnover and absenteeism; and it reduces economic inequality.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “Not only is childcare expensive for the parents, but it often is not a well-paying job for childcare providers. As of 2024, the average hourly wage for childcare workers in Florida is $16.64, with an annual average wage of $34,610.10. The average hourly wage across all occupations in Florida is $30.29, almost twice that of childcare workers. In Florida, for a childcare worker to afford childcare for their own children, they would have to spend 38.1 percent of their income.”
Throughout Florida, there are approximately 1.28 million children under the age of six, according to U.S. Census Bureau data. About 69.1 percent of these children, a total of 883,085 children, had two parents participating in Florida’s workforce. Furthermore, 285,097 children (22.3 percent of the total) had only one of two parents in the labor force, and more than 109,000 children (8.6 percent of the total) had no parents in the labor force.
It cannot be assumed that all nonparticipation in the workforce is due to childcare difficulties. A survey from 2022-23 showed that about 15.3 percent of working parents—totaling 198,465 respondents—indicated “yes” when asked by a survey if they or anyone in the family had to quit a job, not take a job, or greatly change their job because of problems with childcare for children under six years of age.
Working Parents – In Florida, about 64 percent of working parents missed an average of 19 days annually for childcare-related reasons. According to the same survey by the Florida Chamber Foundation, 14 percent of parents surveyed reported leaving their job voluntarily or involuntarily for childcare related reasons. Using the July 2022 Florida TaxWatch analysis, the annual income of working parents with children under the age of six in Florida is $53,042 and the average hourly wage is calculated at $25.50.
To calculate the cost of absenteeism (i.e., missing work), this report combines the percentage of parents missing work and the average number of absenteeism days. Assuming 851,175 working parents (64 percent of 1,329,962) missing an average of 19 days a year creates an economic loss in income of $3.3 billion per year.
Further, in Florida, an estimated 186,194 working parents (14 percent of 1,329,962) experience a total income loss greater than $9.8 billion. Employers incur a cost of $4.9 billion in turnover for replacing workers, which could have been avoided if working parents had access to quality childcare.
Childcare Workers – As of 2024, the average hourly wage of childcare workers is $16.64 while that of all other occupations is $30.29. Research has shown the benefits of raising wages of childcare workers commensurate with the average wages of other occupations. Providing resources for childcare workers to access more training in the field, courses for them to improve their skills, and certifications for childcare workers to show their prowess are some ways that can help increase motivation for working in childcare.
The impact of childcare, as the data suggest, is prominent on Florida’s economy. Losses incurred from turnover and absenteeism of working parents can be avoided with friendlier workplace policies and higher investment in affordable childcare. As an important part of the industry, treating childcare workers better financially can help maintain the workforce in childcare and add to the economy of Florida. Impactful measures that can alleviate the pressing childcare issues mentioned can further grow Florida’s economy.
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About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
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