Advocacy News – Sept. 8, 2023
The Michigan Chamber has been committed to finding innovative solutions to the childcare gaps across our state, including the first-of-its-kind Tri-Share program in which the working parent, employer and state each share one-third of childcare costs. However, we know more needs to be done.
What’s happening:
That’s why the MI Chamber teamed up with the U.S. Chamber Foundation, Grand Rapids Chamber and the Early Childhood Investment Corporation (ECIC) to dive deep into the specifics of Michigan’s childcare crisis.
The results?
An eye-opening new report – Untapped Potential in MI – that studied the impact Michigan’s lack of accessible and affordable childcare has had on our state’s working parents, job providers and economy.
Finding highlights include:
- Childcare issues result in an estimated $2.88 billion loss annually for Michigan’s economy.
- The economic impact can be assessed in two buckets: direct cost to employers and direct state tax revenue loss.
- For a total of $2.3 billion annually, employee turnover is costing employers $1.04 billion, and absenteeism is costing employers $1.26 billion.
- For a total of $576 million annually, employee turnover means the state is losing out on $460 million in tax revenue and absenteeism is costing the state $116 million.
- The economic impact can be assessed in two buckets: direct cost to employers and direct state tax revenue loss.
- 14% of parents left a job in the past six months due to childcare.
- 52% of parents needed to make a significant adjustment to their school or work training due to childcare issues in the past 12 months.
- Cost and affordability were the primary reason for working parents in choosing a childcare provider at 66%. The second leading decider was personal preference followed by proximity to home, work or school.
- The most important or useful benefit for working parents proved to be flexible and remote working hours. However, Michigan has an above average healthcare and manufacturing workforce where remote work is not necessarily an option for majority of our workforce, with low-income earners more likely to have to commute to work.
As President & CEO Jim Holcomb noted: “Building a stronger Michigan for all requires innovative approaches and collaboration to address workforce challenges. By better understanding the impact that childcare availability and cost has on employee wellbeing, turnover and absenteeism, we’ll be better equipped to unlock the economic potential of our state by providing working parents and job providers with the tools to successfully manage a range of needs.”
What’s next:
Partners plan to use the information to continue discussions with policymakers and further expand or develop innovative, Michigan-specific solutions to our state’s childcare needs.
Go deeper:
To read the news release summary, click here. To read the full report, click here.
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.