October 12, 2023


The U.S. Chamber of Commerce Foundation partnered with the Texas Chamber of Business and Industry and Early Matters to understand how much breakdowns in childcare are currently costing Texas.

Texas is one of the fastest growing states in the nation and among the Best States for Job Opportunities according to US News. Having a dynamic and competitive labor force increases the incentive to focus on supporting childcare efforts in the state. As the population increases, finding and affording childcare will become an even larger issue for parents that are eager to enter the workforce. Without suitable childcare options, many Texans will be forced to exit the workforce, which has negative financial impacts on their household and limits the talent pool available to businesses in an already competitive labor environment.

Texas loses an estimated $9.39 billiion annually from its economy due to breakdowns in childcare

Our report estimates how often parents are missing work or educational opportunities because of insufficient childcare. With that information in hand, we model the financial impact to the Texas economy to understand the untapped economic potential due to childcare breakdowns. The results highlight the challenges facing families with young children and clearly show the need for flexible access to high-quality, affordable care. It is essential that any proposed solution be developed by and tailored to the unique needs and distinct challenges of each community, and directly address the issues of access, affordability, and quality.

Key findings in Texas:

  • An estimated $1.80 billion is lost annually in tax revenue due to childcare issues
  • Approximately 7 percent of parents voluntarily left a job due to childcare issues
  • Thirty percent of respondents reported that they or someone in their household has left a job, not taken a job, or greatly changed jobs because of problems with childcare in the last 12 months
  • Fifty-five percent of parents who voluntarily leave their jobs do so when their child(ren) is two years old or younger, indicating that childcare for infants and toddlers is the greatest need