Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1696589805196.pdf (United States)
The Impact of Childcare on Business and the Workforce J U N E 2 0 2 1 Annually, it is estimated Pennsylvania suffers an estimated $3.47 billion impact due to childcare issues.1 This figure represents losses in direct employer costs and tax revenue correlated with employee turnover and absences.

The COVID-19 pandemic exacerbated childcare challenges for many working families.
In spring 2021, The Pennsylvania Chamber of Business and Industry, Pennsylvania Early Learning Investment Commission, and the Center for Rural Pennsylvania conducted a survey to understand the additional impact that COVID-19 had on businesses and their working families.

PUR PO S E 01 02 03 Identify the extent to which Determine how employers Identify areas of opportunity employers are meeting the responded to employee childcare to better address employee childcare needs of their employees.
needs during the pandemic.

childcare needs.

1U.S.

Chamber of Commerce Foundation (2020).

Untapped Potential in PA: How Childcare Impacts Pennsylvania’s Economy The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 1 J U N E 2 0 2 1 SUMMARY • Many employers indicated that their employees have a moderate-to-high childcare need (38 percent).
• Most employers do not have a formal way to gauge the childcare needs of their employees (75 percent).

• One of the more significant reasons why employers believe they lost employees during the pandemic was childcare (54 percent).

• Most employers offered some childcare supports during the pandemic.

However, the majority are planning to end or are unsure if they will continue childcare supports after the pandemic ends (58 percent).
• Many employers are unaware of the variety of resources available to help them with childcare issues (70 percent).

• There is strong interest among employers to explore ways to help working families with childcare needs (66 percent).
The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 2 J U N E 2 0 2 1 METHODOLOGY • Survey was jointly developed by the PA Chamber of Business • Online survey was sent to employers across the and Industry, Pennsylvania Early Learning Investment state in March 2021.

Commission, and the Center for Rural Pennsylvania.

• 284 employers responded by April 28, 2021.
PROFILE OF RESPONDENTS 47% 33% 20% <10 EMPLOYEES 10 to 99 EMPLOYEES 100+ EMPLOYEES FOR-PROFIT 55% NONPROFIT 31% SCHOOLS / GOVERNMENT 8% OTHER 6% The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 3 J U N E 2 0 2 1 EMPLOYEE CHILDCARE NEEDS • An average of 10 percent of employers have a high • The smaller the employers, the more likely percentage of employees (50%+) needing childcare services.
they are to be aware of their employees’ • This rate is fairly consistent across business sizes.

childcare needs.
65% 57% Lower Childcare Need (<25%) Moderate Childcare Need (25% to 49%) Higher Childcare Need (50%+) Unsure of Childcare Need 21% 10% 4% 26% 11% 7% 38% 32% 22% 9% <10 Employees 10 to 99 Employees 100+ Employees The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 4 TYPES OF CHILDCARE SUPPORT CURRENTLY BEING USED BY EMPLOYERS J U N E 2 0 2 1 AMONG EMPLOYERS WHO PROVIDE NO CHILDCARE SUPPORT: REASONS WHY: (Total does not equal 100% due to multiple responses (n=133) 46% Lack resources 21% Not an employee need 20% Lack job flexibility 29% Are unsure of their options to support working families The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 5 J U N E 2 0 2 1 HOW EMPLOYERS IDENTIFY CHILDCARE NEEDS & PROGRAMS 32% Employers said that they have a method to gauge employees’ childcare needs Percent of Employers Who Have Used the Following Resources During the Past 12 months: 33% Early Learning Resource Center 21% 2-1-1 Information and Referral Line 26% COMPASS Website 11% Raise Your STAR Method to gauge childcare needs (n=229); Type of method used to gauge need (n=73) PANDEMIC IMPACT ON SURVEY RESPONDENTS 44% Were subject to government shutdown 53% Had a decrease in profitability in the last 12 months 44% Lost employees as a result of the effects of COVID-19 Of employers who lost employees 54% did so because of childcare concerns 52% Said the pandemic had a significant
 impact on working women in their organization The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 6 J U N E 2 0 2 1 MEETING EMPLOYEE CHILDCARE NEEDS DURING THE PANDEMIC TOP 5 CHILDCARE SUPPORTS EMPLOYERS IMPLEMENTED AS A RESULT OF THE PANDEMIC *Beyond government requirements 72% Flexible Work Schedules and/or Remote Work 12% High Enough Salary to Afford Childcare 21% Paid Leave* 17% Unpaid Leave* 10% Dependent Care Expense Account DO YOU ANTICIPATE KEEPING THE ADDITIONAL CHILDCARE SUPPORTS AFTER THE PANDEMIC IS OVER?
41% Yes 35% Unsure 24% No • Larger employers provided more childcare supports than smaller employers.

• 21% Employers provided no childcare supports.

Total number of respondents for childcare support during the pandemic = 258.

Total does not equal 100% due to multiple responses.

Total number of respondents for continuing childcare supports after the pandemic = 229.

Excluded are “other” responses.


The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 7 J U N E 2 0 2 1 MAJORITY OF EMPLOYERS ARE INTERESTED IN SUPPORTING WORKING FAMILIES AND CHILDCARE Are you interested in exploring additional ways to support working families and childcare?
(N=224) 25% Unsure 13% Unsure 55% 57% 8% Unsure 69% Small Employers Mid-Size Employers Larger Employers The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 8 J U N E 2 0 2 1 TOP FIVE REASONS WHY EMPLOYERS WERE INTERESTED IN EXPLORING WAYS TO SUPPORT WORKING FAMILIES AND CHILDCARE 83% Retain a strong workforce & reduce turnover 79% Improve workforce morale & engagement 68% Attract new employees 67% Increase productivity & reduce absenteeism 67% Increase family friendly reputation & competitive advantage (Total does not equal 100% due to multiple responses, n=138) (Total does not equal 100% due to multiple responses, n=138) TOP FIVE REASONS WHY EMPLOYERS WERE INTERESTED IN EXPLORING WAYS TO SUPPORT WORKING FAMILIES AND CHILDCARE 44% Not enough employee need 23% Unsure of all options and how to move forward (Total does not equal 100% due to multiple responses, n=111) 35% Concerns about financial resources 14% Other Reasons 24% Concerns about staff resources (Total does not equal 100% due to multiple responses, n=111) The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 9 FAMILIARITY WITH CHILD CARE INFORMATION RESOURCES J U N E 2 0 2 1 41% 32% 59% 68% Familiar with Early Learning Resource Center (ELRC)?
(n=200) Familiar with 2-1-1 Information and Referral Line?

(n=199) 34% 12% 66% 88% Familiar with COMPASS Website?

(n=200) Familiar with Raise Your Star Website?
(n=196) The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 10 J U N E 2 0 2 1 WAYS IN WHICH BUSINESSES PARTICIPATE IN SUPPORT FOR EARLY CHILDCARE AND EDUCATION 31% 20% 20% Participate in community education and awareness efforts Involved in United Way’s early childhood initiative Donate to an early childhood program or programs 19% 15% 13% Individual outreach to legislators Participate in Pre-K for PA, Start Strong for PA, and/or Childhood Begins at Home advocacy campaigns Participate in a shared services model to support local childcare providers 12% Member of the PA Early Learning Investment Commission 11% 10% Provide in-kind support to a childcare provider Contribute to Pre-K EITC scholarships (Total does not equal 100% due to multiple responses, n=138) The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 11 J U N E 2 0 2 1 DISCUSSION: Despite a small sample size, survey responses indicate that many Pennsylvania employers have a workforce with childcare needs that were heightened during the pandemic, particularly for women.
While some employers have long supported their working families through childcare supports and expanded these efforts during the pandemic, for others, childcare support is a new and perhaps temporary strategy.
The reported childcare support strategies are consistent with national findings that demonstrate a wide range of options businesses can offer to their working families with young children.2 As businesses are becoming more aware of the barriers that insufficient or unreliable childcare can be to their stability, growth, and profitability, there are strong opportunities to help businesses better understand: • • • • their employees’ childcare needs, the range of childcare support options, including low and no-cost options, existing childcare resources, and the early learning system.
Quality childcare is a two-generation workforce issue, essential for parents to work and a critical foundation of early learning and development for young children.

An increased interest and need from businesses to support their working families through childcare may have scaffolding outcomes.

For businesses: improved recruitment, retention, productivity, reputation, and a promise of a strong workforce pipeline.

For parents: increased job opportunities, advancement, and peace of mind.
For children: safe, nurturing, engaging care and learning, and enhanced school readiness.

And for the economy, potential cost-savings of billions of dollars.

2U.S.

Chamber Foundation (August 2020), Piecing Together Solutions: Employers, Childcare, & Returning to Work in COVID-19 The Impact of Childcare on Business and the Workforce | Data and maps/survey was created by the Center of Rural Pennsylvania 12