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Report: Childcare Issues Cost Texas Employers Nearly $8 Billion a Year
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KLBJ-AM – Austin, TX
Childcare-related workforce disruptions cost Texas employers an estimated $7.9 billion each year, according to a new report calling for changes to how the state oversees childcare and early childhood programs.
Texas 2036 released its State of Childcare in Texas report Tuesday, arguing that responsibility for the state’s childcare system is divided among at least five agencies without a single entity accountable for the system as a whole.
Economic modeling conducted for the report estimates absenteeism, employee turnover and the time required to fill positions left vacant because of childcare problems cost Texas employers approximately $7.9 billion annually.
Texas 2036 found childcare accounts for about 19% of monthly income among families earning less than $35,000 per year, while nearly half of Texas parents who pay for childcare reported sacrificing quality to find affordable care.
Texas 2036 also reported that at least 95,000 children were on waiting lists for childcare subsidies as of late 2024.