Inflation Is Driving Up The Cost Of Child Care

Inflation is now a challenge for businesses that provide daycare services.

The cost of food, rent, electricity, and other supplies is skyrocketing at Baltimore’s Kidzstuff Childcare Center.  Chief executive officer of the Kidzstuff Childcare Center declared that “everything is up”. After raising pay 40%, Kidane is still unable to find enough employees. Her waiting list is becoming longer now that one of her classes has been closed.  “We’re probably up between 30% to 35% for operating costs. That cost is going to have to be passed along to our parents,” she said.

For the third time in a year, she plans to hike the tuition at her nonprofit. Some families are losing thousands of dollars each year because of the 30% increase. There’s no denying that this is a difficult task for Kidane and her colleagues.  She claims that the daycare would close if she didn’t raise the fees.

It’s a trend that’s spreading throughout the country. “It’s happening everywhere. To keep the doors open, this is what has to happen and it is going to continue,” said National Childcare Association director Cindy Lehnoff.

Inflation is just a small component of the whole problem. At least 15,000 programs have been shut down, and there are 11% fewer child care employees than there were before the epidemic. As a result, the typical income in this business is only slightly more than $13 an hour.

Many parents are now faced with lengthier waitlists and higher tuition fees.

One of the businesses owned by Sean Toner in Lewes, Delaware, is Beach Babies.

As a result of the ongoing rise in the cost of living, he will be increasing tuition by 8% to 10% starting in the autumn of 2018. There will be an increase in teacher pay to around $14 per hour.  “I don’t want to be that person that’s driving away the parents,” he said.

At Beach Babies, Jessica Gebbia works as a teacher, and her 5-year-old son is also a student there.  “Most of my paycheck is going just to have him here, and that’s rough because now we have gas prices, food prices., everything’s just going up and up,” she said. She maintains that she can’t quit the profession since she really enjoys her work. “These children need teachers who do love what they do,“ she said.

Since the epidemic began, 88 percent of the jobs lost were held by women, and many mothers have been forced to leave the workforce.

When To-wen Tseng and her husband moved to San Diego, they were unable to afford child care. Due to her employer’s decision to reduce her hours by a third, she flew her boys to Taiwan to reside with relatives while she searches for a second job. “If I just quit my job and stayed home and watched my kids, maybe the whole thing will be easier for my family. I hate to say this, but this is true,” Tseng said. ”The reason why we’re still struggling to pay for this child care, it’s because I don’t want to give my give up my career.”

It’s a difficult decision for millions of parents.

Jessica and her husband have decided that they do not want to have a family at this point in their life.

“The child care plays a big part in that. I can’t imagine having the two of them in day care. There’s just no way I wouldn’t be able to do this job,” she said.

According to a senior economist at Wells Fargo, the child care business has the highest proportion of female workers, with women making up 96% of the workforce. This statistic is based on an analysis of employee demographics in the child care industry.

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