Investing in Child Care Could Add Billions to North Carolina’s Economy

Helping Parents of Young Children Reenter the Workforce Could Boost NC’s GDP by Up to $7.5 Billion

A recent report from the North Carolina Department of Commerce and NC Child suggests that enabling more parents of young children to rejoin the workforce could significantly boost the state’s economy. Titled the “Empowering Work” report, it projects an increase of up to $7.5 billion in North Carolina’s GDP and the creation of 68,000 new jobs. The report highlights the potential benefits of investing in child care and early childhood education. The findings are of particular importance as communities in Western North Carolina continue to recover from Hurricane Helene’s impact.

The study emphasizes the economic advantages of increasing workforce participation among parents who are currently unemployed. It estimates that 14,000 to 31,000 working-age residents with young children could have reentered the workforce in 2023. Governor Roy Cooper stated that quality child care not only aids child education but also supports parents returning to work and assists businesses in hiring skilled employees. Commerce Secretary Machelle Baker Sanders pointed out that the lack of affordable child care limits economic opportunities and poses challenges for talent recruitment.

The “Empowering Work” report identifies policy opportunities to make child care more accessible, such as supporting aspiring child care professionals through education and training programs. It also encourages public-private partnerships and greater employer involvement in child care solutions. The report follows earlier research, including the “Untapped Potential” report, which highlighted the economic costs of child care system gaps in North Carolina.

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