Child Care in State Economies - Part 2 - Recent Trends in Child Care Industry Revenue and Employment

Oct 15, 2026

Uploaded by Callum

This report examines recent trends in the paid child care industry, focusing on both revenue dynamics and employment outcomes. It updates how the sector changed across U.S. states after major disruption during the COVID-19 public health pandemic, using data that generally extends through 2022. The analysis connects paid child care activity to providers and workforce shifts, reviews demand and supply impacts, and highlights differences that matter for state policymakers shaping labor force participation and economic recovery.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages33

Reading Time1 h 23 min

AccessFree to download

Overview: A Three-Part Report Series

Objectives and scope through 2022

Demand-side trends in paid child care usage

Supply-side changes in providers, workforce, and wages

Role in regional growth and labor force participation

Child Care in State Economies 2024 Update A THREE-PART REPORT SERIES JULY 2024 Part 2: Recent Trends in Child Care Industry Revenue and Employment This report was produced by RegionTrack, Inc., an economic research firm, and commissioned by Committee for Economic Development, the public policy center of The Conference Board (CED) with funding from the W.K. Kellogg Foundation. It provides a broad overview of the child care industry from the perspective of allowing parents to participate in the labor force (orto further education and training), and asan industry that employs workers and is an integral part of state economies. Child Care in State Economies: 2024 Update Child Care in State Economies 2024 Overview: A Three-Part Report Series Child Care in State Economies (2024) is a three-part series examining the current status of the paid child care industry in the U.S. The reports provide policymakers and other stakeholders with a detailed update on the status of the paid child care industry following unprecedented disruption during the recent COVID-19 public health pandemic. Both parents and child care providers made significant adjustments in the way paid child care is used and delivered since the onset of the pandemic in early 2020. The objectives ofthe reports are to analyze changes in the use of paid care, assess the residual effects on the childcare industry, and evaluate changes in the economic role played by paid child care in the national and state economies. Most of the data in the report extends through at least 2022, which captures a significant portion of the economic recovery to date. The three reports focus on paid child care because it is the measure of care believed to be most closely identified with the core economic role of child care as a means for parents to work. The use of paid care is also highly correlated with economic activity at the national and state levels. The report series will continue to highlight how the paid child care market differs among the states. During the pandemic, state-level labor markets experienced widely varying outcomes, which in turn generated significant differences in the outcome for paid child care markets across the states. This analysis provides valuable insight to state policymakers who face unique characteristics for both the labor force and paid child care markets in their respective states. Detailed data appendices are provided along with the report allowing the study of changes in child care activity at the state level. The first report focuses on the demand side of the market for paid child care services. This view of child care examines the usage of paid child care by families to enable a parent to work. The child care market experienceda steep drop in the use of paid care amid massive layoffs in the early stages ofthe pandemic. The sector has since experienced steady recovery, but the rebound in paid care usage remains well below pre-COVID levels and lagsthe overall economic recovery. There are also widely differing outcomes in the share of paid child care usage across the states. The second report concentrates primarily on the supply of child care from the perspective of paid child care providers. This analysis is performed within the context of identifying structural changes to child care delivery since the onset of the recent pandemic. This includes the number of child care providers, changes in the child care Child Care in State Economies: 2024 Update 3 workforce and wages, and spillover effects from the child care industry to the broader economy. The pandemic prompted significant changes in the structure of the industry, both nationally and across the states. The focus of the third report is the role of paid child care usage in regional economic growth and associated changes in labor force participation, income, and poverty. Child care remains a key factor in economic growth via its role as a means for parents with children to

FAQs

What does Part 2 focus on in the child care report series?

Part 2 focuses on recent trends in child care industry revenue and employment, analyzing how paid child care changed across the pandemic recovery period.

Why is paid child care usage treated as a key economic indicator?

The report frames paid child care as closely linked to the core economic role of enabling parents to work, and it is correlated with economic activity at national and state levels.

What data sources and time range does the report rely on?

Much of the paid child care activity is sourced from the Annual Social and Economic Supplement (ASEC) within the Current Population Survey (CPS). The document notes that data generally extends through at least 2022, with emphasis on annual reference periods spanning 2019–2022.

Oct 15, 2026

Uploaded by Callum