Supporting child care and early childhood programs is smart business
Child care isn’t just a family issue—it’s a business issue with financial implications.
On average, Arizona businesses lose $4.7 billion annually due to child care complications through reduced revenue and extra hiring costs, according to a study funded by the Helios Education Foundation.
We know that when we invest in early childhood, the economy thrives.
Expanding child care access and affordability could generate over $12 billion in annual economic output and support over 115,000 jobs, while giving families an extra $9,300 per year in household income, according to an analysis by the Rounds Consulting Group.
As Arizona’s early childhood agency, First Things First (FTF) has generated $18.2 million annually in revenue as a result of FTF-supported activities without drawing from Arizona’s General Fund, according to Rounds Consulting. Through the agency’s work, $8.5 million was generated in state general fund revenues, and $9.7 million was generated in local government tax revenues.
“Access to child care allows parents to be gainfully employed, learn new skills and advance the income within their households,” said Jim Rounds, president of Rounds Consulting. “This eventually gets passed on to their children as they grow up and are equipped with the same skills to succeed that their parents utilized.”
FTF-funded programs include:
- Quality child care: Supporting quality improvements, child scholarships and professional development for teachers.
- Parenting programs and developmental screenings: Helping families prepare children for school and life.
- Family support and literacy: Empowering parents as their child’s first teacher.
Those FTF-supported programs contribute to $323 million annually in total economic output while sustaining 2,800 jobs. Investing in child care access isn’t just the right thing to do—it’s a win-win for families, businesses and the economy.
For nearly two decades, First Things First has built a foundation for early learning and family support in our communities. Yet its funding, which comes from the state’s tobacco tax, is shrinking while demand is growing.
In Arizona, over 75,000 children do not have access to child care. That is a 25% gap between the supply and demand for quality, affordable child care, according to the American Institute for Research. Working parents miss work, reduce their hours or quit due to child care disruptions—costing Arizona roughly $4.7 billion annually in lost earnings, productivity and revenue.
Here’s why supporting child care and early childhood programs is smart for businesses:
Access and affordability
Accessible and affordable child care is critical in supporting employee recruitment and retention—and a smart strategy for business and economic success. It creates a more focused, productive and committed workforce, allowing businesses to stay competitive.
Quality early learning
Arizona’s economic future relies on a pipeline of skilled, motivated workers—and that pipeline starts in early childhood. Quality early learning programs build the foundation for the skills employers value most, including problem-solving, critical thinking, collaboration, communication and decision-making.
High return on investment
Research shows that investing in quality child care yields a double-digit return. When it comes to Arizona, for every $1 invested in early childhood, communities see up to $16 in economic return. Investing in early childhood delivers long-term results for families, communities and Arizona’s economy. The earlier the investment, the greater the impact.
Improving the affordability of child care could unlock $2.4 billion in annual discretionary in Arizona families, according to Rounds Consulting. This would allow parents to redirect spending to other needs and consumer purchases, which results in supporting local businesses and fueling the economy.
How businesses can support
Businesses that support and invest in working families not only contribute to Arizona’s economy, but also directly enhance their own business’s performance and sustainability. Sign on to First Things First’s letter of support for Arizona’s working families and young children. This letter supports a strategic investment that would increase funding for early childhood programs and services, including increasing access to quality child care.
As a business leader, you play a pivotal role in shaping the economic landscape of Arizona. Your support of these efforts will amplify the message and advocate for a policy change that benefits not only Arizona’s children and families, but also our state’s business community and overall economic health.
Learn more about ways to get involved: https://www.firstthingsfirst.org/business-take-action/