Guest ContributorAddressing Arizona’s childcare shortage was the focus of a recent panel discussion hosted by the Arizona Chamber of Commerce & Industry. The event, part of the Chamber Policy Series, explored the economic impact of limited childcare options and the potential role that businesses can play in finding solutions.
Melinda Gulick, CEO of First Things First and the event’s moderator, opened by highlighting data from a 2021 report produced by the Arizona Chamber Foundation in partnership with the U.S. Chamber of Commerce Foundation. The report found that Arizona loses $1.77 billion annually due to childcare challenges, with an additional $348 million lost each year in tax revenue. Gulick stressed that the issue goes beyond families and deeply affects Arizona’s workforce and economy.
“The lack of affordable childcare costs the state approximately $1.4 billion per year in lost productivity and employee turnover,” Gulick said, noting that 6% of Arizona parents have voluntarily left a job due to childcare challenges. A recent update from ReadyNation indicated that Arizona families lose $3 billion annually in lost earnings — earnings that could otherwise stimulate the economy.
The panel featured a mix of business leaders and experts from education and state agencies, including Chad Gestson, executive director of the Arizona Institute for Education and the Economy; Rich Nickel, president and CEO of Education Forward Arizona; Stephanie Itelman, chief impact officer at Executives Partnering to Invest in Children (EPIC); and Stacy Reinstein, deputy assistant director at the Arizona Department of Economic Security (DES).
Discussions revolved around how the childcare shortage negatively impacts businesses, families, and overall economic growth. Nickel presented findings from Education Forward Arizona’s “Billions to Gain” report, which showed that increasing post-secondary education attainment could significantly boost Arizona’s economy. However, childcare remains one of the key barriers preventing many Arizona parents from pursuing further education and career advancement.
DES’ Reinstein spoke about the various programs her department oversees to support early childcare providers. One major issue she highlighted is the ongoing workforce shortage within the childcare industry. Reinstein also explained how DES has used federal relief funds to bolster childcare providers, improve business practices, and stabilize operations during and after the pandemic.
Gestson discussed the Arizona Institute for Education and the Economy’s focus on early childhood education, drawing on his experience as an educator to emphasize the long-term economic benefits of investing in early care. He pointed out that early childhood education lays the groundwork for future workforce development and economic prosperity, making it a critical component of the state’s growth strategy.
Itelman, representing EPIC, shared insights on how businesses can play a proactive role in addressing the childcare shortage. She provided examples of innovative ways that employers are helping to solve the problem, such as providing on-site childcare facilities and partnering with childcare providers to offer subsidized care for employees’ children. Itelman underscored the fact that investing in childcare is not just a benefit for employees but a strategic decision that can improve workforce retention and productivity.
Throughout the discussion, the panelists agreed that solving Arizona’s childcare crisis requires a collaborative approach involving businesses, government, and community organizations. The private sector, in particular, has an important role to play in offering solutions that meet the needs of working parents while helping to stabilize the state’s economy.
Event attendees were encouraged to continue advocating for policies and initiatives that expand access to affordable and quality childcare. Gulick reiterated that solving the childcare shortage is both an economic and business imperative for Arizona’s future.
Image from Herman Thind
Joseph Kavetsky
Add comment