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Untapped Potential: Economic Impact of Childcare Breakdowns in the U.S.

The U.S. Chamber of Commerce Foundation holds the position that childcare is a two-generation workforce issue because it is essential to supporting the workforce of today and vital to developing our workforce of tomorrow. There is not enough access to affordable, quality childcare which makes it difficult for parents trying to enter, re-enter, or stay in the workforce. In addition, the pandemic exacerbates existing issues in the childcare system and creates an impossible situation for parents, employers, and childcare providers. There are working parents who struggle to balance home childcare and work, children who miss valuable educational opportunities, childcare providers who are fighting to stay open and serve their communities, and employers wondering how and when their employees with children can return to work.

There have been numerous studies highlighting the developmental benefits of highquality childcare for young children as well as the professional benefits for their parents. Children gain a strong foundation and their parents can pursue careers or enhance their education or vocational skills. When there are breakdowns in the childcare system, it can cause children to miss valuable opportunities and parents may experience disruptions to their work or education. Despite the myriad benefits resulting from high quality childcare, many families are struggling to find viable options for their children. In 2019, the U.S. Chamber of Commerce Foundation conducted studies in four states—Idaho, Iowa, Mississippi, and Pennsylvania—to better understand the size of the childcare problem in those communities. The report estimated that each state lost hundreds of millions of dollars in economic activity due to breakdowns in childcare. The following year, the U.S. Chamber examined how parents, employers, and providers were responding during the pandemic to childcare choices, workplace situations, and the provision of care. In 2021, the U.S. Chamber of Commerce Foundation has conducted case studies in Alaska, Arizona, Arkansas, Missouri, and Texas.

Alaska

Untapped Potential

The U.S. Chamber Foundation partnered with the Alaska Chamber on this report to better understand the unique needs of working parents in Alaska and examine the current childcare landscape. Since the height of the pandemic, Alaska’s unemployment rate has slowly started to return to pre-pandemic levels, falling by more than five percentage points since April of 2020.

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Arizona

Untapped Potential

The Chamber Foundation partnered with the Arizona Chamber on this report to better understand the unique needs of working parents in Arizona and examine the current childcare landscape. Arizona is one of the ten fastest growing states in the nation and is positioned to emerge from the pandemic with a strong and vibrant economy.

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Arkansas

Untapped Potential

The U.S. Chamber of Commerce Foundation partnered with the Arkansas State Chamber of Commerce and Excel by Eight Foundations to understand how much breakdowns in childcare are currently costing Arkansas.

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Florida

Untapped Potential

The U.S. Chamber Foundation partnered with the Florida Chamber Foundation to produce this report, which aims to address the unique needs of working parents in Florida by exploring the current childcare landscape.

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Michigan

Untapped Potential

The U.S. Chamber Foundation partnered with the Grand Rapids Chamber, the Michigan Chamber of Commerce, and the Early Childhood Investment Corporation (ECIC) on this report, to understand the unique needs of working parents in Michigan by exploring the current childcare landscape.

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Missouri

Untapped Potential

The U.S. Chamber Foundation partnered with the Missouri Chamber of Commerce and Industry on this report to better understand the unique needs of working parents in Missouri and examine the current childcare landscape.

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Texas

Untapped Potential

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.

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Utah

Untapped Potential

The U.S. Chamber of Commerce Foundation partnered with United Way of Salt Lake, Voices of Utah Children, and the Salt Lake Chamber of Commerce on this report to better understand the unique needs of working parents in Utah and examine the current childcare landscape.

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2020 Untapped Potential Reports

Creating Solutions to Complex Challenges

The U.S. Chamber of Commerce Foundation partnered with the business communities in Idaho, Iowa, Mississippi, and Pennsylvania and their early education partners to understand just how much breakdowns in childcare cost each state.

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