The importance of the child care industry might seem obvious; yet when most people consider elements critical to the economic infrastructure, more likely, priority is given to facets such as transportation, education, and public works than child care. By identifying quality child care as an integral part of our economic infrastructure, Cumberland County sends three very important messages to both current and future industries.
- First, Cumberland County values and nurtures small businesses. We recognize child care settings of all sizes as viable, important businesses in our community.
- Second, Cumberland County values the needs of employees and will support efforts to see all citizens find and maintain gainful employment.
- Third, and most important, Cumberland County values our children by recognizing that quality child care helps set the stage for future education.
Smart Start is a big part of child care in North Carolina. The program is designed to improve child care in the state by giving the poor better access. It also helps teachers attend college. North Carolina was the first state in the nation to have a comprehensive early care and education system for all children birth to age five. Smart Start is a national model for what it accomplishes for young children. Cumberland County, one of first counties chosen as a pioneer SMART START site, is a model program in the state. North Carolina and Cumberland County must continue to be leaders and recognize the educational and economic development benefits this world-class system offers.
The Economic Impact of the Child Care Industry in North Carolina takes child care -- traditionally a "family issue" -- and examines it in "economic development terms." It documents how the child care industry is integral to sustaining and growing the county’s economy. This report specifically offers the following key indicators supporting the argument behinds strengthening the child care industry:
- NO MULTIPLIERS WERE USED IN THIS STUDY
- Child care homes and centers are small businesses that collect almost $68 million in gross receipts each year.
- There are 484 licensed/regulated child care homes and centers in our county – 269 homes and 215 centers
- These businesses employee 2,109 taxpayers
- 9,096 children birth to five are enrolled in full-time, licensed and regulated care – allowing the parents to find and maintain gainful employment.
- Those working parents earn over $267 million annually and pay an estimated $80 million in taxes.
- Thus, these parents are tax GENERATORS as apposed to tax CONSUMERS.
Because child care allows much of our workforce to be gainfully employed, it is a vital part of our economic infrastructure. High quality child care also saves industry money by:
- Reducing unscheduled employee absences:
- 24% of unscheduled absences are related to family issues
- Unscheduled absences cost small businesses $600,000 annually
- Unscheduled absences cost large businesses $3.6 million annually
- Increasing employee retention
- A study done by Bank of America found employees who use child care are twice as likely to maintain employment at the bank
- Employees making $8 an hour costs over $9,000 to replace
- Salaried employees cost up to 150% of their base salary to replace
Sources:
Cumberland County Economic Impact Data Sheet
