Childcare-center staffing and costs are failing both employees and parents

Who’s watching the kids?  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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No safety net The news • The parents are not alright. While many aspects of life may be returning to some version of normal from the COVID-19 pandemic, a big one isn’t: childcare. Parents across the US find themselves in a precarious situation as day-care centers operate on reduced capacity or have closed altogether. Staffing shortages and positive COVID-19 cases mean that centers can close with little to no notice, leaving working parents scrambling to find backup care—with women taking the bulk of the time away from work. [WSJ] • Bad math. Staffing shortages have burdened many service-based industries, but few are in such dire straits as the childcare industry. US Department of Labor data show that the industry is down more than 126,000 workers from prepandemic levels. The industry’s median income puts many workers below the poverty line, but razor-thin operating margins mean that raising pay means raising tuition, thus passing the burden on to working parents. Workers are leaving the industry in droves for jobs that pay more, provide benefits, and reduce COVID-19 exposure. [WaPo] Women who cut back their paid-work hours to accommodate family responsibility risk losing wages, benefits, and opportunities for advancement, not to mention sleep. Our insights • Why it matters. The crisis of childcare availability—which disproportionately affects Black and Latina women in the US—has hindered women’s return to the workforce. In the short term, taking time outside the workforce means lost wages and higher stress; long term, it can mean a reduction in earning potential and increased difficulty in breaking back into the job market. • Change the culture. More than two million women left the US workforce in 2020, and they have been slow to return because of factors beyond their control. Support for employees with young children can look like flexible hours, job-training and reskilling programs, and other cultural shifts. Here’s how employers can make balancing work and home life more sustainable. — Edited by Gwyn Herbein    Meet the parents Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007