Child care produces tremendous economic benefits

Every dollar the government invests in child care has the potential to return $2.54.

by NUPGE

Vancouver (1 June 2010) - May was child care month, a time to acknowledge the value of child care and those who work in the field, says the British Columbia Government and Service Employees' Union (BCGEU/NUPGE).

"Every parent who’s able to go to work because of child care knows its worth. Parents who see their child thrive in a care setting have nothing but praise for the providers," the union says.

"Still, as a society, we don’t seem to recognize the importance of quality child care. Public spending on child care in B.C., including federal contributions, is low compared with other countries. We spend less than one percent of GDP on early childhood education services. The United States spends double. Nordic countries spend six to seven times as much of their GDP on child care"

BCGEU notes that polls consistently show people believe there’s a need for a greater supply of affordable child care spaces. Yet, governments are unwilling to spend the money. British Columbia funds only one regulated space per six children under the age of

12. The median monthly fee for toddler space in a B.C. child care centre is an astronomical $720.

A 2009 report from economist Robert Fairholm identified shortcomings in B.C.’s child care system, including an inability to meet demands for service and a shortage of child care workers.

Fairholm also found that every dollar the government invests in child care has the potential to return $2.54 in long term net benefits.

Research conducted at the University of British Columbia has looked at the connection between social achievement and long-term economic growth.

"It has found B.C.’s high rate of children who are 'not ready to learn' when they start school will cause the province to forgo 20% in GDP growth during the next 60 years," BCGEU notes.

"The research argues greater investment in early learning will help the economy in a variety of ways, including productivity gains arising out of more mothers working, being absent less often because of consistent and dependable child care and reduced health, child welfare and justice system costs," the union adds.

"Everyone - not just parents - profits from quality child care. It promotes healthy child development and enables parents to work and pay taxes. Child care builds communities, creates jobs and supports the economy. Time and time again, economic research points to the quantitative value of child care. The time has come for the B.C. government to fully fund a quality, universal, child care system."

Links and sources
  National Union of Public and General Employees (NUPGE)

Posted: June 11, 2010

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