PINEHURST, N.C. — Moore County’s shortage of accessible and affordable child care is costing local businesses and taxpayers an estimated $43.5 million every year.
Business, education, healthcare and early-childhood leaders discussed the economic impact during the Business & Child Care Summit held August 7 at the Carolina Hotel in Pinehurst.
The event was organized by ExCEL NC, a statewide coalition of business and community leaders advocating for policies that strengthen North Carolina’s child-care system and workforce.
Businesses Lose an Estimated $33.5 Million
According to information presented at the summit, the Moore County child-care crisis results in approximately $33.5 million in lost business activity annually.
The county also misses out on an estimated $5.3 million in state tax revenue and $4.7 million in local tax revenue. Together, those business and tax losses total approximately $43.5 million each year.
More than 5,700 Moore County workers reportedly experienced employment disruptions related to child care during the past year. Those disruptions can include missing work, reducing hours, turning down employment opportunities or leaving the workforce entirely.
Employers at the summit said the lack of child care makes recruiting and retaining workers more difficult across industries including healthcare, hospitality, retail and education.
More Than 300 Children on One Waiting List
Jermonica Lindsey, director of Shining Stars Child Development Center, told summit participants that the center has more than 300 children on its waiting list.
Jonathan Davis, CEO of FirstHealth of the Carolinas and president of Moore Regional Hospital, said some parents want to return to work after starting a family but cannot find affordable and accessible care.
The summit also included Julie Voigt of Sandhills Community College and Hailey Caulder, owner of Pink of the Pines.
Participants described child care as essential economic infrastructure because parents cannot consistently participate in the workforce without a safe and reliable place for their children.
Statewide Changes Could Help Providers
Business leaders applauded recent legislation creating a statewide child-care subsidy reimbursement floor. Supporters say the change will bring reimbursement rates closer to the actual cost of providing care, especially in rural communities where many programs face significant financial pressure.
Economic modeling cited by ExCEL NC estimates that the reform could add more than $252 million to North Carolina’s gross domestic product, increase personal income by $161.4 million and support approximately 4,030 jobs statewide.
However, coalition members said additional long-term investment will be needed to address the Moore County child-care crisis and meet the needs of families, employers and providers.
Broader research cited by ExCEL NC estimates that solving North Carolina’s child-care shortage could generate as much as $7.5 billion in additional economic activity and support up to 60,000 jobs statewide.
Source: News release written by Billy Warden for ExCEL NC.
