Childcare as an Economic Imperative

In recent months, the Greater Miami Chamber of Commerce surveyed over 100 of its members to better understand the profound impact of childcare challenges on workforce productivity.

The results were striking and underscored the urgent need for action: 75% of respondents reported that childcare barriers are significantly affecting their businesses. These issues manifest in several ways, including employee absenteeism, tardiness, turnover, unfilled positions, and decreased productivity. For instance, 70% of surveyed businesses reported absenteeism or tardiness as a challenge, 44% noted slowed productivity, and 25% faced turnover expenses due to childcare barriers (Figure 1). These numbers highlight the clear and direct impact that a lack of accessible, affordable childcare has on business operations, employee satisfaction, and economic stability.

This problem is not isolated to GMCC's members but mirrors broader statewide and national trends. According to a report from the Florida Chamber, similar challenges have been identified across the state, further validating the feedback from our members. The lack of affordable, high-quality childcare creates a snowball effect that extends far beyond individual businesses, affecting workforce development and ultimately state tax revenues. The Florida Chamber's report, Untapped Potential in FL, estimates the total economic impact of the childcare crisis at a staggering $5 billion annually, with $911 million in lost state tax revenue alone (Figure 2). These figures illustrate just how critical it is to address the childcare barrier for the benefit of businesses and the state economy alike.

Understanding the Numbers

The cost of childcare is a significant barrier for many working families, particularly in Florida. On average, the annual expense of childcare often consumes more than 20% of a household’s income, which far exceeds the 7% threshold typically considered reasonable. When paired with rising wages due to minimum wage increases, many families find themselves disqualified from federal and state childcare subsidies, despite still being unable to afford these services. This creates a situation where economic mobility is stifled, as families are left struggling to cover costs even as they strive to improve their economic standing. For example, a family earning $30,000 a year with two children may find themselves $5,000 worse off than when they earned $15,000, simply due to the loss of subsidy eligibility. The unintended consequences of outdated subsidy thresholds have placed many working families in financial limbo, making it harder for them to maintain or improve their quality of life.

Looking Ahead

In response to these challenges, the Greater Miami Chamber of Commerce, along with other organizations such as the Children's Trust, the United Way, the Early Learning Coalition, Career Source South Florida, and the Children's Movement, is advocating for changes to the current childcare eligibility thresholds. By adjusting these thresholds to better reflect modern economic realities, we can provide meaningful relief to families and simultaneously strengthen the workforce pipeline. Expanding eligibility for subsidies would not only help families access affordable childcare, but it would also allow businesses to retain a more stable and productive workforce.

As we approach the upcoming legislative session, we are fully committed to ensuring that childcare issues remain a top priority. Our focus will continue to be on advocating for comprehensive solutions that address the systemic barriers families and businesses are currently facing. We are working closely with Senator Alexis Calatayud and Representative Vicki Lopez to bring about meaningful changes. We believe that through collaboration and persistent efforts, we can make significant progress in addressing these concerns for our community.

While long-term solutions are still in the works, the state of Florida has introduced a tax credit aimed at supporting employers in addressing this critical issue. For employers looking to take advantage of this opportunity, the Florida Chamber provides an Employer Guide, which contains all the essential information on eligibility and how to navigate the application process. 

Together, through continued advocacy and partnerships, we can begin to tackle the childcare crisis, ensuring both families and businesses thrive in the process.