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Pandemic-era childcare subsidies expired on Sept. 30, affecting over 200,000 childcare providers nationwide that depend on those funds to pay their workers. Without the support, over 70,000 centers are at risk of closure, forcing the parents of over 3.2 million children—and their employers—to bear the brunt of finding alternative solutions for childcare.
Even before the subsidies expired, working parents’ capacity to juggle employment and childcare needs was stretched thin. In a survey of more than 1,080 U.S. working adults from Catalyst, a nonprofit supporting women in the workplace, more than half of employees with children say they have considered leaving their organization because of a lack of childcare benefits.
“These numbers are stark, and we would not be surprised to see them rise given the reality that working parents now face without childcare subsidies,” says Erin Souza-Rezendes, vice president of global communications at Catalyst. “This is a critical workplace issue that we’ve yet to solve, and employers definitely have a role to play.”
Women, in particular, are concerned about how the worsening strain of caregiving needs will influence their careers, with 67% of women concerned it will negatively impact their careers, compared to 52% of men. Forty-four percent of women also say they will likely need to change jobs to balance childcare with work demands, compared to 32% of men. This impact is more pronounced among parents of color: half of Black and Latinx working parents say they need to change jobs, compared to 34% of white parents. And 35% of women say they will likely have to stop working to manage their childcare needs.
There’s also the affordability issue. Fifty-five percent of all employees say they could not afford childcare without financial assistance or employer subsidies. And workers want these benefits: 75% say they would use childcare benefits, like on-site childcare or backup childcare, if their employers provided them, while 70% of working parents say they are more likely to choose an employer that offers childcare benefits over one that does not. Another 59% say they would utilize other caregiving benefits, like eldercare support, if offered.
To be sure, not all employers can afford to provide such benefits, but they can ease the burden of caregiving with offerings like emergency paid time off for children or elder care, financial subsidies, flexible spending accounts, flexible or hybrid work options, and employee discounts for childcare.
“If you’re offering these things, you will be an employer of choice. You should communicate those things clearly and repeatedly to your employees so they know that you’re committed to this and realize how critical the intersection of childcare at work is,” says Souza-Rezendes.
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
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On day one of Fortune's Most Powerful Women conference, corporate leaders shared strategies for returning Gen Z workers to the office. The secret? Provide an experience they can't find elsewhere.
“Make it fun to come in and also find ways for them to experience what we all had, which was you got to hear something that you wouldn’t have had otherwise. You get to be more creative, and then there’s the want to come in versus this sense of that’s what you need to do," said Maryam Banikarim, co-founder of NYCNext and founder and managing partner of MaryamB.
Tune into the MPW livestream here, and stay tuned for more MPW coverage in CHRO Daily this week.
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