The messed up market for child care workers

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A big problem is that pay is low — the median wage is $14.60/hour, in the bottom 5% of all occupations, research finds.

Data: Federal Reserve Bank of Chicago analysis of Bureau of Labor Statistics data; Note: Child care workers include anyone who self-reports their occupation as "child care worker" or identifies as working in "child day care services"; Chart: Axios VisualsThis sector is a key part of the U.S. economy. Without access to care, parents, typically women, often can't join the labor force — at a time when the job market is still tight.

The researchers look at those who self-report their occupation in the Labor Department's Current Population Survey as "child care worker" or identify as working in "child day care services."that are typically used to evaluate employment in the industry covers a broader swath of workers — and in that cut, employment has recovered to pre-pandemic levels.You'd expect that the high demand for caregivers would lead to higher wages to attract more workers.

But the sector is constrained when it comes to prices by what parents of young children — folks likely at the start of their careers with more limited funds — can pay for care. When parents can't afford care, typically they drop out of the workforce — to provide that care themselves "for free." And parents who live close to extended family, who are willing and able to provide free care, may be more price sensitive, the researchers point out.

 

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