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Policy Institute Releases Provider Survey, Highlighting Continued Challenges of Child Care Industry

Findings showcase ongoing issues facing child care industry, including increased costs, staff turnover

 BATON ROUGE — The Louisiana Policy Institute for Children (LPIC) released results from “Ready to Thrive: The Current Challenges and Opportunities Facing Louisiana Child Care Providers,” which surveyed Louisiana child care businesses to better understand the challenges of the field that supports parents as they go to work, go to school, or look for new work. LPIC conducted the survey in partnership with Agenda for Children, Child Care Association of Louisiana, Children’s Coalition for Northeast Louisiana, For Providers By Providers, Louisiana Association of the Education of Young Children, Louisiana Association of United Ways, Northwestern State University, On Track by 5 Alliance, Pointe Coupee Early Childhood Coalition, United Way of Southeast Louisiana, and Volunteers of America South Central Louisiana.

The results provide insights into the challenges facing the early care and education sector, emphasizing the following:

  • The cost of doing business remains high. Most providers continued to experience increased costs for routine expenses, and over two-thirds of providers saw their premiums for at least one type of business insurance increase.
  • Staffing remains a concern, and impacts families’ access to care. Over 60% of providers worried about short- and long-term staff turnover, and almost half of providers indicated they have at least one job vacancy.
  • Wages continue to trend upward, yet remain below a liveable wage standard, and employees receive few workplace benefits. Louisiana’s child care directors and teachers are overwhelmingly educated and credentialed, however the average rate of pay in the sector remains below the level necessary to support a family.

“Early childhood education is a crucial element of our state’s economy,” said Libbie Sonnier, Ph. D., executive director of LPIC. “The findings from this latest provider survey should trouble all Louisianans, especially as more and more families find themselves waitlisted for child care seats. Without access to quality, affordable child care, parents cannot go to work—period.”

According to the findings, most child care providers in the state are experiencing rising costs for routine expenses, like food, cleaning supplies, and insurance.

“As a business owner, these survey results show that we still have lots of opportunities to support the child care industry,” said Megan Garretson, owner of Young Scholars Academy. “Every business leader I know understands that everyone relies on someone who relies on child care. As a state, we cannot afford to have a child care sector in economic crisis.”

Nearly 80% of providers experienced at least one staffing cost increase or challenge, including paying higher wages to retain staff, hiring less qualified or experienced staff, and seeing new staff leave within six months of starting.

“All other businesses rely on this one particular business, but our business model is so precarious,” said Kristi Givens, co-founder of For Providers By Providers. “Even with child care businesses doing all we can to increase wages, we’re still losing quality employees and struggling to hire new ones. As a child care owner myself, I feel this pain and I see it among all our member organizations.”

The complete findings from “Ready to Thrive: The Current Challenges and Opportunities Facing Louisiana Child Care Providers,” can be found here. The survey was conducted from February 15 to March 6, 2024. Questions ranged from asking about operational challenges and cost increases, staffing challenges, and more. For more information on LPIC, please visit PolicyInstituteLA.org. To watch today’s press conference, click here.

About Louisiana Policy Institute for Children: Louisiana Policy Institute for Children is a 501(c)(3) nonpartisan, nonprofitorganization dedicated to ensuring that Louisiana’s young children, from birth to age four, are best prepared for success in school and in life. The Policy Institute develops policy proposals informed by data, research, best practices, and the experiences of other states to improve the outcomes of Louisiana’s youngest citizens, and further provides educational and outreach activities based on recommended policy solutions. The organization works to ensure children are safe, healthy, and have the opportunity to reach their full potential. For more information, visit www.policyinstitutela.org and follow the Louisiana Policy Institute for Children on Facebook, Twitter, and Instagram.

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