Childcare should not cost more than 7% of a family’s income in the US, but some parents are using between 8% -42% of their income to have their children cared for while they’re at work. Recent studies also show that more than half of parents are more concerned about child care costs now than they were before the pandemic.
While the cost of daycare varies depending on age group and location, the national average currently stands between $9,000 to $9,600 a year. One US study revealed average childcare costs are higher than in-state college tuition fees across 30 states and the District of Columbia.
The latest OECD data shows that the US has one of the highest childcare costs in the world, coming in third behind the UK and New Zealand.
Highest and Lowest Childcare Costs Globally
The five most expensive countries for childcare are paying way above the OECD average of 14.5%:
Country % of Household Income
- United Kingdom 34%
- New Zealand 30%
- United States 33%
- Ireland 29%
- Australia 12%
On the other end of the scale, the households paying the least for childcare are located in South Korea (at 3%) and the Czech Republic (2.6%).
Most Mothers Can’t Afford to Work and Pay Childcare
Naturally, the rising cost of childcare is feeding into the gender equality gap in the workplace, as lack of access to reliable and affordable Childcare can hold working mothers back from continuing their careers. The majority of working parents have adjusted their jobs and schedules to accommodate the costs, and women are bearing the brunt of these changes. Recent studies revealed these insights:
- 63% of working parents have made career or workplace changes to afford child care.
- 74% of moms and 66% of dads say their workdays have been impacted by childcare arrangements falling through unexpectedly.
- One in three mothers has lost a day’s pay due to childcare arrangements falling through.
- More than 50% of women have scaled back their working hours to reduce childcare costs.
- 25% have left the workforce entirely.
With these stats in mind, it’s not surprising to learn that lost productivity caused by childcare issues is costing employers $12.7 billion a year!
A Rise in Female Entrepreneurship and Coworking Space for Parents
As a result of the struggle to balance work and home life, many women are choosing to become their own bosses instead. There has been a significant rise in female entrepreneurship throughout the USA in the past few years; in fact, women started 1,821 new businesses every day in 2019. There are now 114% more female entrepreneurs in the US than there were 20 years ago, and these women-owned businesses are generating $1.8 trillion annually.
In response to this, we’re seeing a rise in the availability of child-friendly coworking space for mothers and fathers. Working parents can thrive in coworking environments like this, which include nursing facilities and onsite playgrounds, as well as wellness and kid-friendly refreshments and wellness/ workout facilities for parents. The number of family-friendly workspaces is rising in the US, the UK and Europe, helping more parents to balance work and family responsibilities. These coworking solutions typically work out to be more affordable than childcare costs.
Childcare – Average Cost Per Month
- Centre-based day care for infants $991
- Centre-based day care for toddlers $847
- Centre-based day care for preschool-age children $771
Are you looking for a modern coworking solution that makes it easier to balance work and family time? Contact our Instant Offices experts to discuss your needs.
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