• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Finance

Why it’s so hard to find child care right now: 80% of centers are understaffed

Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
July 28, 2021, 10:00 AM ET

Roughly 4 out of 5 child care centers nationwide report they’ve consistently had at least one open position for a month or longer, with about 15% of centers reporting having six to 15 open roles. 

Less staff has real consequences. About 16% of the U.S. workforce, or about 26.8 million working adults, depend on child care to work. Yet parents are reporting it’s harder and more expensive to find child care. Half of the centers struggling with staffing shortages are enrolling fewer children, according to a new survey of 7,500 early childhood educators from the National Association for the Education of Young Children.

A third of centers with open positions report they have longer waitlists and are unable to reopen classrooms, while 24% say they’ve reduced their operating hours.

But why are child care centers still struggling, especially after Congress allocated more than $50 million to the industry over the course of the pandemic? 

“Federal relief funds have helped programs weather the worst of the pandemic, but they haven’t fixed the underlying economic conditions in early childhood education that led to the crisis in the first place and which led to the closure of thousands of programs,” NAEYC CEO Rhian Evans Allvin said in a statement. 

In many cases, staffing shortages come down to pay. The average early childhood worker earned just $11.65 an hour in 2019, according to the biennial 2020 Early Childhood Workforce Index from the Center for the Study of Child Care Employment at the University of California, Berkeley. With many corporations raising wages to over $15 an hour, child care providers have struggled to compete. 

Many providers also took on debt just to keep their doors open through the pandemic. Two-thirds of child care center operators and 76% of home-based providers say they put supplies and business expenses on credit cards during the past 18 months, according to NAEYC’s data. 

“So many child care programs are facing the same problems,” Allvin said. But the increased state and federal funding is helping. About 63% of programs reported receiving some type of financial assistance during the pandemic and nearly half, ​​46%, say their program likely would have closed without that help. 

Some of that funding is still making its way through the system, meaning providers may be able to count on more assistance in the coming months. Additionally,  President Joe Biden has thrown his support behind increased funding for child care in his American Families Plan, which includes universal pre-K, caps on family child-care expenditures and increased wages for child-care workers.

Although the $3.5 trillion budget package that’s making its way through Congress does contain child care funding, it’s only expected to pass with Democratic support. House Speaker Nancy Pelosi (D-Calif.) has said the House won’t take up any infrastructure legislation unless the Senate passes the social program package, but talks on both sides were at a standstill early in the week.

Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.

About the Author
Megan Leonhardt
By Megan Leonhardt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

CybersecurityMeta
Trump’s FTC backs off social media regulation despite finding that nearly 20% of America’s children are online for 4 hours or more
By Catherina GioinoFebruary 27, 2026
4 hours ago
Personal FinanceInsurance
State Farm is doling out $100 checks to 49 million customers. Here’s who qualifies and how to get paid
By Sydney LakeFebruary 27, 2026
6 hours ago
Aerial view of a data center under construction in Ohio.
EconomyEconomics
Before AI gains materialize, governments will have to deal with a ‘policy tradeoff,’ Moody’s says: How to handle the massive spending and debt risk
By Tristan BoveFebruary 27, 2026
6 hours ago
Graphic depicting a coin reads, Fortune Crypto: Facebook Crypto 2.0
CryptoCrypto Playbook
Facebook’s first crypto push set off a firestorm. This time around, its plans are met with a shrug
By Jeff John RobertsFebruary 27, 2026
7 hours ago
Personal Financewealth management
The Great Wealth Transfer is already happening as millennials hitting their ‘Peak 35’ are richer than ever
By Catherina GioinoFebruary 27, 2026
8 hours ago
Low angle view of male carpenters working on rooftop of construction frame
EconomyU.S. economy
More people are moving out of the U.S. than moving in for the first time since the Great Depression—a bad omen for the $38.8 trillion national debt
By Tristan BoveFebruary 27, 2026
8 hours ago

Most Popular

placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt robot vacuum maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezFebruary 25, 2026
2 days ago
placeholder alt text
Success
Jeff Bezos says being lazy, not working hard, is the root of anxiety: ‘The stress goes away the second I take that first step’
By Sydney LakeFebruary 25, 2026
2 days ago
placeholder alt text
Commentary
'The Pitt': a masterclass display of DEI in action 
By Robert RabenFebruary 26, 2026
2 days ago
placeholder alt text
Economy
Trump claims America is ‘winning so much.’ The IMF agrees, adding that Trump’s trade policies are the only thing holding it back from even more
By Tristan BoveFebruary 26, 2026
1 day ago
placeholder alt text
Economy
It’s more than George Clooney moving to France: America is becoming the ‘uncool’ country that people want to move away from
By Nick LichtenbergFebruary 27, 2026
18 hours ago
placeholder alt text
Success
Gen Z Olympic champion Eileen Gu says she rewires her brain daily to be more successful—and multimillionaire founder Arianna Huffington says it really does work
By Orianna Rosa RoyleFebruary 25, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.