New Employer Child Care Survey from CARE.com

A new survey from Care.com finds that child care benefits have become a top priority for employees and employers alike. As Axios sums up, “Child care outranked mental health support, health and fitness discounts, commuter benefits and a range of other perks — and it was the No. 1 priority after basic benefits like health insurance and paid time off.” 

Top findings

• A lack of child care benefits is a top reason why workers have sought another job. In fact, “1 in 5 U.S. workers have left a job because their employer didn’t provide adequate care benefits, and 1 in 5 say they would switch jobs for better support.
• Employers in the study said “child care benefits have a positive impact on talent recruitment (81%), retention (80%), and productivity (82%).”
• Over half (56%) of employers say they are prioritizing child care benefits to recruit and retain staff, up ten percent from 2023.
• Employees “whose companies offer child care benefits report an average out-of pocket savings of $2,727, or 15% of the average annual cost of $18,000. This number was highest in the manufacturing and construction sectors, where the average savings were $3,860.”
• When asked what job benefits they lack that could entice them to switch jobs, “20% of respondents said child care benefits, including 27% of Gen Z and 25% of Millennials.”

Putting It In Context

• A 2022 FFYF poll of small business owners found that 71% of small business owners think that access to high-quality, affordable child care is essential or important to strengthening the economy and helping workers. 
• And according to state-by-state analysis by the Bureau of Labor Statistics, approximately 740,000 employees on average miss work each year because of child care challenges. 
• Of note: According to Care.com, “Following new parent support, when asked what family care benefits they’d choose if limited to just one, 14% of employers say Dependent Care FSAs, followed by on-site child care (10%) and cash subsidies for care (8%). 

Opportunities

Child care challenges are big enough in the U.S. that solving them will require multiple approaches and solutions. Congress is currently considering multiple bipartisan proposals that would help provide relief for working families who need support with child care, including:

Appropriations and Funding

•  First and foremost, strong federal funding is critical. Federal programs help families find and afford child care in all 50 states – but at current funding levels they’re only reaching a fraction of eligible families. 
• Learn more about how Congress funds these programs here. 

Tax Provisions 

• The bipartisan PACE Act would strengthen the Dependent Care Assistance Program (flexible child care savings accounts) and expand the reach of the Child and Dependent Care Tax Credit (CDCTC), the federal tax credit specifically designed to support working parents with the cost of child care. Learn more. 
• The bipartisan Child Care Investment Act would strengthen the Employer-Provided Child Care Credit (45F) for businesses who want to locate or provide child care for their workforce. It would also modernize the Dependent Care Assistance Program (flexible child care savings accounts) and expand the reach of the Child and Dependent Care Tax Credit (CDCTC), the federal tax credit specifically designed to support working parents with the cost of child care. 

Bipartisan Legislation

• Current proposals in Congress range from broad to targeted and highlight the complex needs facing families, children, and providers. See our comprehensive Bipartisan Legislation in the 118th Congress doc.