The cost of day care and preschool has risen 4.4% in March compared to the previous year, exceeding the overall inflation rate. This increase is adding pressure on families, leading some to spend less, dip into savings, or even leave the workforce. Factors contributing to this rise include the reduction in pandemic-era child care benefits and the increasing wages for child care workers, which have seen a 27% increase since 2019, even after adjusting for inflation. Despite these wage hikes, pay in the child care industry remains low, making it challenging for providers to attract and retain workers. As a result, some providers are resorting to raising tuition fees to compensate for the lack of funds previously provided through pandemic benefits.
Why child care costs are soaring
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