A recent report from Moms First finds that the U.S. child care crisis is costing businesses up to $70 billion annually in lost workforce productivity, driven by absenteeism, turnover, and reduced employee performance. The impact is especially concentrated among “foundational workers”—including roles in healthcare, education, retail, and manufacturing—who make up the majority of the workforce and are most affected by unreliable or unaffordable childcare.
The report outlines how childcare instability directly disrupts workforce participation, with many parents missing work, reducing hours, or leaving jobs entirely due to gaps in care. These disruptions extend beyond early childhood, affecting families with children up to age 12 and creating ongoing challenges tied to school schedules, closures, and care availability. At the same time, only a small percentage of employers currently offer childcare benefits, despite evidence showing strong returns on investment.
Employer-led solutions—such as childcare stipends, backup care, flexible scheduling, and on-site care—are shown to improve retention, productivity, and overall workforce stability, with potential returns ranging from 5% to 300%. The report positions childcare as essential workforce infrastructure, emphasizing that coordinated action between businesses and policymakers is needed to address systemic gaps and unlock long-term economic and workforce benefits.