Key Takeaways
- The U.S. child care industry generated $61.7 billion in revenue in 2022, with a projected CAGR of 5.4% from 2023 to 2030.
- Global child care services market was valued at $599.5 billion in 2023 and expected to reach $912.4 billion by 2032 at a CAGR of 4.8%.
- In 2023, the U.S. child care market size stood at $59.4 billion, projected to grow to $83.5 billion by 2030.
- The U.S. child care workforce numbered 1.05 million in March 2023, down 5% from pre-pandemic levels.
- 94% of child care workers in the U.S. are women as of 2022.
- Average hourly wage for child care workers in U.S. was $13.95 in 2023.
- Average cost of infant care in U.S. was $14,072 annually in 2023, 23% of median income.
- Family child care average weekly cost: $245 for infants in U.S. 2023.
- Center-based toddler care averages $13,000/year in U.S. 2023.
- 51% enrollment rate in formal child care for 0-5 year olds U.S. 2022.
- 11.5 million children enrolled in child care programs U.S. 2023.
- Center-based care serves 40% of children under 5 in U.S. 2023.
- 73% of U.S. center-based programs accredited by 2023 standards.
- QRIS implemented in 39 states covering 1.2 million children 2023.
- Staff-to-child ratios: 1:4 for infants in 45 states 2023.
The child care industry is a massive economic engine facing critical staffing challenges.
Access and Enrollment
- 51% enrollment rate in formal child care for 0-5 year olds U.S. 2022.
- 11.5 million children enrolled in child care programs U.S. 2023.
- Center-based care serves 40% of children under 5 in U.S. 2023.
- Head Start enrolls 800,000 low-income children annually 2023.
- 35% of infants (0-1) in non-parental care U.S. 2022.
- After-school programs serve 10 million kids daily U.S. 2023.
- 23 states guarantee pre-K access to all 4-year-olds 2023.
- Rural child care slots cover only 28% of demand 2023.
- 50% of U.S. population lives in child care deserts 2023.
- Enrollment rebounded to 95% pre-pandemic levels by 2023.
- Latino children have 20% lower access to high-quality care 2023.
- 1.3 million children on child care subsidy waitlists 2023.
- Informal care (relatives) used by 32% of families 2023.
- Universal pre-K could serve 5 million more kids by 2030.
- 42% drop in infant care enrollment post-COVID 2023.
- Military child care serves 200,000 children worldwide 2023.
- Tribal child care programs enroll 35,000 children 2023.
- 65% of 3-4 year olds enrolled in preschool U.S. 2023.
- Waitlists average 6 months for child care slots 2023.
- 75% of low-income kids lack access to quality care 2023.
- Enrollment in family child care homes down 15% since 2019.
- Canada child care enrollment up 20% due to subsidies 2023.
- 28% of eligible kids receive subsidies 2023 U.S.
- School-age care enrollment 7 million U.S. 2023.
- Black children 15% less likely to be enrolled in centers 2023.
- Pandemic caused 300,000 slot loss; 100,000 recovered 2023.
- Employer centers serve 1 million children 2023.
- 55% of children 0-5 regularly in care 2023.
- 85% of states have waitlists for pre-K 2023.
- 40 states license family child care; enrollment varies widely.
- Only 10% of infants have licensed care access in rural areas 2023.
Access and Enrollment Interpretation
Costs and Pricing
- Average cost of infant care in U.S. was $14,072 annually in 2023, 23% of median income.
- Family child care average weekly cost: $245 for infants in U.S. 2023.
- Center-based toddler care averages $13,000/year in U.S. 2023.
- Preschool (4-year-old) care costs $10,853 annually on average U.S. 2023.
- In 27 states, infant care costs more than rent for a 2-bedroom apartment in 2023.
- Average U.S. family spends 20% of income on child care for one child in 2023.
- Massachusetts highest state: $17,182 for infant care annually 2023.
- Home-based care cheaper by 15% than centers nationally in 2023.
- After-school care averages $5,943/year per child U.S. 2023.
- Nanny services cost $800/week full-time in urban U.S. areas 2023.
- Child care costs rose 6.8% from 2022 to 2023 in U.S., outpacing inflation.
- Low-income families pay 35% of income on child care in 2023.
- Employer-sponsored care saves families 25% on average costs 2023.
- Summer care costs $2,000+ per child in U.S. 2023.
- DC highest: $24,243 infant care/year; West Virginia lowest $7,231 2023.
- Subsidy covers only 13% of eligible families' child care needs 2023.
- Tax credit max $3,000/child but averages $1,200 claimed 2023.
- Center fees increased 8% in 2023 due to wage pressures.
- Rural areas child care 10% cheaper than urban 2023.
- Dual-income families spend $22,000/year for two kids 2023.
- Au pair programs cost $18,000/year including fees 2023.
- 45% of U.S. families live in child care deserts in 2023.
- Pre-K tuition averages $6,500/year in public programs 2023.
- Child care co-ops reduce costs by 30% for members 2023.
- Inflation-adjusted child care costs up 25% since 2019.
- 12 million U.S. children under 5 in need of care in 2023.
- 61% of U.S. children under 6 have all available parents in workforce 2023.
Costs and Pricing Interpretation
Market Size and Growth
- The U.S. child care industry generated $61.7 billion in revenue in 2022, with a projected CAGR of 5.4% from 2023 to 2030.
- Global child care services market was valued at $599.5 billion in 2023 and expected to reach $912.4 billion by 2032 at a CAGR of 4.8%.
- In 2023, the U.S. child care market size stood at $59.4 billion, projected to grow to $83.5 billion by 2030.
- Child day care services employment in the U.S. supported 1.2 million jobs in 2022.
- The child care sector contributed $57.5 billion to U.S. GDP in 2018, equivalent to 3% of state GDPs on average.
- U.S. child care expenditures reached $46.7 billion in 2021 from families alone.
- The early childhood education market in North America was $28.5 billion in 2022.
- Child care market in Asia-Pacific grew at 6.2% CAGR from 2018-2023 due to urbanization.
- U.S. infant care segment dominated with 35% market share in child care industry in 2023.
- Employer-sponsored child care benefits market valued at $4.2 billion globally in 2022.
- Child care franchises in U.S. generated $12.5 billion in system-wide sales in 2023.
- Home-based child care providers contributed 40% to total U.S. child care capacity in 2022.
- Digital child care platforms market expected to grow from $2.1 billion in 2023 to $5.8 billion by 2030.
- U.S. child care industry saw 4.5% revenue growth post-COVID in 2022.
- Global nanny services market size was $12.3 billion in 2022, growing at 7.1% CAGR.
- Child care market in Europe valued at $145 billion in 2023.
- U.S. preschool market segment accounted for 28% of child care revenue in 2023.
- Child care industry in Canada reached CAD 10.5 billion in 2022.
- After-school care programs generated $8.7 billion in U.S. in 2022.
- Child care tech investments hit $1.5 billion in venture capital in 2023.
- U.S. child care market projected to hit $100 billion by 2028.
- Family child care homes represent 25% of U.S. child care market revenue.
- Global child care products market (toys, etc.) at $15.2 billion in 2023.
- Child care services in Australia valued at AUD 13 billion in 2022.
- U.S. child care industry employment multiplier effect supports 2.4 million jobs.
- Toddler care segment grew 6.8% YoY in U.S. child care market 2023.
- Corporate child care spending in U.S. reached $2.8 billion in 2023.
- Child care market in India expected to grow at 12% CAGR to 2028.
- U.S. child care revenue per child averaged $12,500 annually in 2022.
- Global child care staffing market valued at $45 billion in 2023.
Market Size and Growth Interpretation
Quality and Regulations
- 73% of U.S. center-based programs accredited by 2023 standards.
- QRIS implemented in 39 states covering 1.2 million children 2023.
- Staff-to-child ratios: 1:4 for infants in 45 states 2023.
- 95% of states require CPR/first aid training for staff 2023.
- Group sizes capped at 8 for infants in 30 states 2023.
- Criminal background checks required in all 50 states + DC 2023.
- 22 states require bachelor's for lead preschool teachers 2023.
- Health inspections annual in 48 states for child care 2023.
- 60% of programs meet high QRIS levels 2023.
- Licensing covers 12% of providers; 88% unregulated 2023 U.S.
- 35 states updated ratios post-2020 for better quality.
- NAEYC accreditation: 10,000 programs serving 1 million kids 2023.
- Vaccine requirements for staff in 40 states 2023.
- 15-hour annual training required in 25 states 2023.
- Violation rates: 20% of centers cited for ratios 2023.
- Gold-rated QRIS programs serve 25% of subsidized kids 2023.
- 50 states regulate square footage per child min 35 sq ft.
- Fingerprint checks mandatory in 47 states 2023.
- 70% compliance with sanitation standards in inspections 2023.
- CDA credential held by 200,000 workers 2023.
- 18 states ban corporal punishment explicitly 2023.
- Emergency preparedness plans required in 95% states 2023.
- Nutrition standards aligned with CACFP in 90% programs 2023.
- 30 states tie licensing to education levels 2023.
- Quality rating average 3.2 stars across QRIS states 2023.
- Lead screening required upon enrollment in 25 states 2023.
- 85% of states have inclusive policies for disabilities 2023.
- Fire safety codes met by 92% of licensed centers 2023.
- Continuous improvement grants to 5,000 programs 2023.
Quality and Regulations Interpretation
Workforce and Employment
- The U.S. child care workforce numbered 1.05 million in March 2023, down 5% from pre-pandemic levels.
- 94% of child care workers in the U.S. are women as of 2022.
- Average hourly wage for child care workers in U.S. was $13.95 in 2023.
- Turnover rate in child care centers averaged 26% annually in 2022.
- 41% of U.S. child care workers have a bachelor's degree or higher in 2023.
- Child care workers earn 40% less than the average U.S. worker wage in 2022.
- There were 530,000 family child care providers in U.S. in 2021.
- 23% of child care staff reported quitting due to low pay in 2023 survey.
- U.S. child care workforce vacancy rate hit 37% in early 2023.
- Median annual salary for preschool teachers was $35,000 in 2023.
- 15% of child care workers in U.S. lack health insurance in 2022.
- Child care directors earn average $52,000 annually in U.S. 2023.
- 62% of child care workers are parents themselves in 2023.
- Home-based providers average 6 children per home in U.S. 2022.
- Child care workforce in California totals 250,000 workers in 2023.
- 30% of child care staff have less than 1 year experience in 2023.
- U.S. child care aides numbered 200,000 in 2023.
- Wage stagnation: child care wages rose only 2% adjusted for inflation 2019-2023.
- 48% of centers reported staffing shortages as top issue in 2023.
- Average age of child care worker is 40 years in U.S. 2022.
- Racial diversity: 58% white, 20% Hispanic child care workers U.S. 2023.
- Child care workers' benefits coverage: only 55% get paid sick leave 2023.
- Projected job growth for child care occupations: 2% by 2032.
- In-home nannies average $18.50/hour in U.S. 2023.
- 70% of child care programs increased wages to retain staff in 2023.
- Child care workforce participation rate dropped to 75% post-COVID 2023.
Workforce and Employment Interpretation
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