New Evidence about Childcare's Economic Effects Print

A new report by the Centre for Spatial Economics, commissioned by the Child Care Human Resources Sector Council quantifies the remarkable economic effects of childcare.

A key finding is that every dollar invested in childcare programs increases GDP (economic output) by $2.54—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.

The full report,   Literature Review of Socioeconomic Effects and Net Benefits: Understanding and Addressing Workforce Shortages in ECEC Programs [Adobe Acrobat PDF - 674.51 KB] was prepared by economist Robert Fairholme, of the Centre for Spatial Economics.  

 More information about the Canadian ECEC workforce can be found on the Sector Council's website

Last Updated on Tuesday, 15 December 2009 14:31