The Child Care Shortage is Holding NC’s Economy Back – Here’s How We Fix It

February 26, 2025

North Carolina Doesn’t Have Enough Child Care Spaces

Imagine five families standing in line, but only one child care spot is available. This isn’t just an image—it’s the reality for thousands of families across North Carolina. Data shows that more than five families compete for every licensed child care space in our state. This crisis isn’t just about child care; it’s about our economy, workforce, and the well-being of North Carolina families.

Why This Matters to Every North Carolinian

Parents can’t work if they don’t have reliable child care. Between April and May 2024, nearly 29% of North Carolina parents aged 25 to 39 reported their child couldn’t attend child care due to closures, unaffordability, or safety concerns. This isn’t a niche issue—it affects every sector of our economy. When parents can’t work, businesses lose employees, and our economy suffers.

Currently, child care subsidies only reach about 51,000 children statewide, covering less than 15% of eligible children. This massive gap leaves countless families struggling, not because they lack ambition but because they lack options. Yet, research shows that every dollar invested in early childhood education yields a 4-to-9 times return. That’s not just good policy; it’s smart economics.

The Crisis Behind the Numbers

Child care providers want to help, but they’re trapped in a broken system. Staffing shortages are a major barrier. Providers can’t hire and retain qualified educators because wages are low, even though the work is demanding and essential. This forces many centers to limit enrollment, leaving parents on waitlists for months—sometimes over a year.

Consider this: 62% of parents of infants and toddlers are working, but only 19% of these children can be served by existing licensed programs. The math doesn’t add up, and families pay the price.

What Other States Are Doing (And Why NC Should Follow Suit)

States like Michigan, North Dakota, and Colorado aren’t waiting around. They’re investing in child care because they understand that a strong child care system strengthens the entire economy:

  • Michigan’s Tri-Share Program: Splits child care costs between parents, employers, and the state. Result? 82% of employees say it helps them stay in their jobs.
  • North Dakota: Invested $66 million to expand child care access, with leaders calling it essential for economic growth.
  • Colorado: Funds 15 hours of free child care weekly for every four-year-old using tobacco tax revenue.

These investments aren’t just helping families—they’re boosting local economies, supporting businesses, and increasing state tax revenue. Virginia’s $309 million investment in early care is projected to return $364.3 million in family earnings, with $30.4 million going back to the state through taxes.

North Carolina Needs to Act Now

We’re asking North Carolina to invest $300 million to stabilize our child care system. This isn’t just an ask; it’s an urgent call to action. Without this investment, more child care centers will close, more parents will be forced out of the workforce, and our economy will suffer.

High-quality early childhood education isn’t just nice to have—it’s a necessity. By prioritizing early education, North Carolina can reduce educational inequities, support working families, and build a stronger future for everyone. Take action by:

  1. Educating Yourself and Others: Stay informed about the issues and solutions. Join NCECF’s email list to receive future advocacy packages and calls to action.
  2. Engaging with Policymakers: Reach out to state legislators to share talking points:
    1. Child Care Keeps North Carolina Working. Parents can’t work without child care. Right now, more than five families compete for every child care spot. This hurts families, businesses, and our economy.
    2. A $300 Million Investment Pays Off: Investing $300 million in child care will help families and boost our economy. Every dollar spent on early childhood education brings back 4 to 9 times that amount in economic benefits.
    3. Other States Are Taking Action—We Should Too. States like Michigan and North Dakota are investing in child care to help their workers and businesses. If North Carolina doesn’t act, we risk falling behind.
  3. Joining Advocacy Groups: Collaborate with organizations like NCECF to amplify your voice and participate in coordinated advocacy efforts.
  4. Sharing Personal Stories: Personal anecdotes about the impact of child care issues on your family can be powerful in illustrating the need for change to policymakers and the public. Posting on social media and tagging your legislators can get attention. 

Child care isn’t a luxury. It’s a necessity—for families, businesses, and the economic health of North Carolina. Let’s take a stand. Let’s invest in our future.

Read the full brief here.