How Childcare Costs Impact Florida’s Economy

Childcare Costs Impact Report Cover

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 (883,085 children) had two parents participating in Florida’s workforce, while 285,097 children (22.3 percent) had only one parent in the labor force, and more than 109,000 children (8.6 percent) had no parents in the labor force.

Not every case of non-participation is driven by childcare challenges, yet a 2022-23 survey found that 15.3 percent of working parents—about 198,465 people—reported quitting, declining, or drastically changing a job due to childcare problems for children under six.

Working Parents

Roughly 64 percent of working parents in Florida missed an average of 19 workdays annually because of childcare needs. Using the July 2022 Florida TaxWatch analysis, working parents with children under six earn an average annual income of $53,042 (about $25.50 per hour). Assuming 851,175 working parents (64 percent of 1,329,962) each miss 19 days, the resulting loss of income totals $3.3 billion per year.

In addition, an estimated 186,194 working parents (14 percent of 1,329,962) experience income losses exceeding $9.8 billion due to leaving the workforce altogether. Employers shoulder a further $4.9 billion in turnover costs to replace these workers—losses that more accessible, affordable childcare could prevent.

Childcare Workers

As of 2024, Florida childcare workers earned an average of $16.64 per hour, compared with $30.29 per hour for all other occupations. Research shows that boosting childcare wages toward the statewide average, alongside expanding training, skill-building courses, and professional certifications, would improve recruitment and retention in the sector.

Childcare issues clearly impose sizable economic costs on Florida—from absenteeism and turnover among parents to chronic understaffing in childcare centers. Investing in affordable, high-quality childcare and better compensation for childcare workers can mitigate these losses and unlock future economic growth.

Meet the Author:

Jui Shah
Jui Shah
Research Economist
LinkedIn

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