Washington Business Spring 2019 | Washington Business | Page 42

business backgrounder | education & workforce
Research has shown that productivity depends largely on a workers’ command of knowledge and information.
Individuals with more education and work experience tend to have significantly higher incomes than their
counterparts with less education. Data from the U.S. Bureau of Labor Statistics show that an employee with a high
school diploma only will earn 15 percent less than an employee with an associate degree, 39 percent less than an
employee with a bachelor’s degree and 50-60 percent less than an employee with a graduate degree.
Beginning with youngest learners is key to this success. Investment in early learning and quality child care
equates to an annual rate of return between 7 and 10 percent. Investment in quality child care and early childhood
education tackles inequality while promoting productivity at the same time.
a healthy industry
Washington state is home to almost 10,000 quality child care providers with revenue of about $1 billion. This
includes family child care, home-based providers and child care centers. In addition to the $1 billion in direct
revenue generated by the industry, an additional $2 billion is generated in related productivity in other industry
sectors for a total economic impact of $2 billion.
The industry also supports 28,000 sole proprietors and wage and salary
employees, which in turn support more than 9,000 workers in other industries
for a total jobs impact of 37,027. The $564 million in employee compensation and
There are
proprietors’ earnings generated directly within the child care industry is estimated
to support about $339.2 million in additional earnings across the state for a total
earnings impact of $902.7 million. (Data gathered from Committee for Economic
Development, Child Care in State Economies 2019 update)
While the data purport to show a healthy industry, there may be dire
in Washington who may
consequences if issues impacting the child care and early childhood learning
require paid child care services.
industries are not addressed. A recent study by the Metro Atlanta Chamber and
Georgia Early Education Alliance for Ready Students concluded that child care
challenges cost the state $1.75 billion in lost economic activity
and $105 million in lost tax revenue (Opportunities Lost:
How Child Care Challenges Affect Georgia’s Workforce and
Economy, 2018). Contributing factors include quitting a job,
school or work training program; being fired from a job; or
turning down a job opportunity because of child care issues.
1,374,816
children under age 15
child care access boosts economy
Access to affordable child care can increase labor force
participation and support state and regional economic
growth. Access to affordable child care can support parents
seeking additional education and training, which contribute
to higher earnings over an individual’s lifetime. The lack of
affordable child care and early learning opportunities can
have the adverse impact on the state’s economy.
The Washington state Legislature, supported by efforts
from the public and private sector, is working to address the
lack of affordable child care in the state of Washington. The
Child Care Collaborative Task Force, co-chaired by AWB, is
a public-private partnership working to identify those areas
where business can play a role in supporting the child care
and early learning needs of the state. Former State Rep.
Ruth Kagi, who championed early learning and child care
42 association of washington business