Child Care Disruptions Create
Up to $70 Billion Opportunity
for U.S. Businesses

New research from Moms First reveals a proven way to stabilize your workforce: provide child care benefits to employees

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The Most Overlooked Lever for Workforce Stability

Child care disruptions cost U.S. businesses up to $70 billion every year in lost productivity, turnover, and absenteeism as found in analysis by McKinsey & Company.

But within that loss is a clear, actionable opportunity.

At a time when companies are navigating unprecedented disruption, from AI to labor shortages, child care is one of the most immediate and underutilized levers to stabilize the workforce.

At the center of this opportunity are foundational workers: the nurses, teachers, retail associates, and manufacturing employees who keep businesses running.
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The Data Behind the Opportunity

We often think of infrastructure as roads, ports, or power grids. But child care plays an equally critical role, enabling millions of employees to show up to work every day. 

When access breaks down, businesses feel it immediately through absenteeism, turnover, and lost productivity.

80%

of America’s workforce are foundational workers whose jobs cannot be easily automated

$35–45B

annual employer losses due to lack of child care are concentrated in the foundational workforce

9 in 10

parents report workforce disruption due to child care challenges

5-300%

average ROI from targeted employer led child care interventions

What Employers Can Do Right Now

While long-term policy change is essential, companies don’t have to wait. The report outlines practical, proven solutions employers can implement today.
Increase Flexibility

Increase Flexibility

Enable predictable and adaptable schedules
Improve Access

Improve Access

Provide backup care and navigation support
Reduce 
Costs

Reduce 
Costs

Offer stipends, subsidies, or reimburse-ments
Expand 
Supply

Expand 
Supply

Partner with providers to secure child care slots
Support Early Parenthood

Support Early Parenthood

Strengthen paid leave and return-to-work transitions
The most effective strategies combine multiple solutions tailored to your workforce.

Acknowledgements

This research was funded by the Annie E. Casey Foundation. We thank them for their support but acknowledge that the findings and conclusions presented in this report are those of the authors alone, and do not necessarily reflect the opinions of the Foundation.

This report was developed by Moms First with analytical support from McKinsey & Company, which included using research from the McKinsey Health Institute. McKinsey’s role was limited to providing data analysis and research insights. The findings and any associated interpretations or recommendations presented in this report are those of Moms First and do not reflect the views of McKinsey & Company.