Rising Childcare Costs

Since the recent recession, the expense of traditional childcare has outpaced inflation. According to data from the Department of Labor, from 2009 through 2016 the overall Consumer Price Index increased about 12 percent, while the childcare and nursery school index jumped more than 21 percent.

The main reason for the rising costs is staffing. Daycare center personnel can be expensive, and the price of care to consumers responds accordingly. In addition, taking care of kids is labor-intensive, while increasing worker productivity is difficult. Daycare centers can’t cut corners when it comes to caring for children, and so the rising costs get passed on to consumers. Moreover, a facility often has fixed costs in terms of labor, rent, and other expenses that may be skewed towards their customers if there is not enough enrollment at the facility for a given month.

Rising insurance rates also play a role in the increasing costs of traditional daycare. Daycare centers must guard against liability and be responsible for facility maintenance, and so the costs of care are reflective of that burden.

Finally, childcare is a highly regulated industry. Each state has its own rules about staff –to-children ratios and how much space a center must allocate per child. The burden of meeting these requirements often results in increased costs to parents.

With rising costs continuing, childcare alternatives are frequently sought. Au Pair 4 Me provides qualified, live-in childcare providers for a fraction of the cost of many daycare centers. Plus your child benefits from the personal attention that only an au pair can deliver. For more information see our programs or call us at 1 (800) 748-8414.