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The Economic Impact of Child Care

"Two sparrows on the same ear of corn are not long friends." – French proverb


The National Child Care Association, an Exchange Strategic Partner, just released the results of its study, "The National Economic Impacts of the Child Care Sector." Interesting findings include...

* In 2001, Americans spent approximately $38 billion a year on licensed child care programs....Expenditures on licensed care will be even higher in 2002 -- likely exceeding $41 billion. As a result...the sector creates enough income to support approximately 2.8 million direct, indirect and induced jobs, of which about 1/3 are in the child care industry itself. In addition, the sector generates almost $9 billion in tax revenues.

* The licensed child care industry directly employs more Americans than public secondary schools, and is directly responsible for twice as many jobs as the farming sector.

* Child care provides an essential infrastructure which enables mothers and fathers to be employed outside the home, and earn necessary income. By making it possible for parents to work, the formal child care sector enables Americans to earn more than $100 billion annually.

To view and print an executive summary of the NCCA study, go to

Watch for a trend report,"A Profile of Child Care Arrangements in the United States," in the upcoming November issue of Child Care Information Exchange. To subscribe to Exchange, go to

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