Literature Review of Socioeconomic Effects and Net Benefits


The Child Care Human Resources Sector Council released a report entitled Literature Review of Socioeconomic Effects and Net Benefits: Understanding and Addressing Workforce Shortages in Early Childhood Education and Care (ECEC) Project.

The report shows that investing in early childhood education and care not only benefits children and families, but it also creates the maximum possible jobs while passing the most revenue to government.

Key findings in the report:

  • Child care grows the economy. Every dollar invested in child care programs increases GDP (economic output) by $2.30—one of the strongest levels of short-term economic stimulus of all sectors, and far ahead of construction and manufacturing.
  • Child care creates jobs. Investing $1 million in the child care sector generates almost 40 jobs—at least 40% higher than the next closest industry, and four times the jobs generated by investing $1 million in construction activity.
  • Child care more than pays for itself. Even in the short term, more than 90% of the cost of hiring child care workers goes back to governments as increased revenue, and the federal government gains the most. Over the long term, every dollar invested in quality child care programs returns $2.54 in benefits to society.

To read the report, please click here.