(The Center Square) — Nearly five years after the COVID-19 pandemic depressed the daycare availability, costs, and labor participation, is on the rise.
This, according to the Independent Fiscal Office in its periodic review of child care spending since 2019.
The report notes that the state has received about $1.7 billion in one-time child care stimulus funds disbursed by the Department of Human Services. The funds went toward operating costs like facilities and staffing.
Salaries for private child care workers have gone up, and with them numbers of people working. The industry has shown a growth of 1,200 workers, or 2.8%. Average weekly salaries have increased by over 34%, though the report notes that some of the increase could be due to more hours worked by part-time employees.
The outlook for families, however, has been less optimistic. Child care costs have continued to rise year after year, ballooning 20% since 2019.
Prices are highest in the state’s major population centers, Philadelphia and Allegheny counties, where pay over $12,000 annually for child care.
Rural communities aren’t immune, either. Sullivan, Perry, Susquehanna, Juniata, and Indiana counties saw the largest increases. Statewide, the average tops $10,000 annually.
Government programs intended to offset the cost continue to support families, but have the biggest impact on those who fall within narrow bands of income.
The Department of Human Services’ Child Care Works program subsidizes care for low-income households so that caregivers are left with a weekly copay. The state also recently expanded its child care tax credit to mirror the federal rate.
The report outlines the benefits of the Child Care Works program and state and federal tax credits for two different families of three. For a family enrolled in the proper programs earning $30,000, just above the poverty line, child care costs represent 3.5% of their yearly income. At $60,000, that percentage jumps to 15.9%.
When families cannot afford child care, the cost burden usually results in employment gaps, which disproportionately affect mothers.
