The Economic Effect of Child Care in North Dakota

1. The Economic Effect of Child Care in North Dakota Data and analysis prepared by North Dakota KIDS COUNT, 2004

2. Outline of presentation • Who needs child care? • What kinds of care do parents use? • Affordability of child care • Employment & income of child care workers • Overall contributions of child care to economy • Policy recommendations

3. Who needs child care in North Dakota?

4. Of children under 6: • In two parent homes - 71% had two employed parents • In single parent homes - 78% had an employed parent • Parental employment rates are higher in N.D. than in the U.S.

5. Percent of Children under 6 whose Parents were Employed, 2000

6. Percent of Children 6-17 whose Parents are Employed, 2000

7. What kinds of child care do North Dakota parents use?

8. North Dakota Children Enrolled in Licensed Child Care and Head Start Programs, 2002-3

9. How affordable is child care in North Dakota?

10. Costs • Infant care • $88-100 per week per infant • 10-12% of income for family with median income

11. Average Costs of Licensed Child Care in North Dakota, 2003

12. Average Costs of Licensed Child Care in North Dakota, 2003

13. Employment & Income of Child Care Workers

14. Employment • Child care worker is the 10th largest occupation in North Dakota • Over 6,000 persons are child care workers

15. Top Ten Occupations in N.D., 2000

16. Income • Child care workers earn 63% of ND median hourly wage • ND child care workers are well educated • 90% ND teacher assistants have high school degree • 78% child care workers in U.S. have high school degree

17. Workers’ Wages in 2002

18. Job Turnover • Nationally • about 1/3 of child care workers leave their position each year • North Dakota • 60% of child care teacher assistants have less than one year at current job

19. Length of Time at Current Job for N.D. Child Care Workers in Licensed Programs, 2002

20. Overall Economic Contributions of Child Care to North Dakota

21. Revenues from Child Care in North Dakota, 2002

22. Relative contribution of child care to ND • Child care revenues are comparable to gross state product of numerous industries

23. North Dakota Gross State Product for Select Industries, 2001 (in millions of dollars)

24. Current Economic Contributions of North Dakota Child Care $123 million in revenue 6,020 jobs

25. Ripple Effects of Child Care Spending Direct Effects Child-care centers take in revenue. Total Contribution to State Economy Indirect Effects Centers make purchases. Induced EffectsCenters pay workers who purchase goods and services.

26. Economic Contributions Of Child Care in North Dakota • Every additional $1.00 spent on child care creates a total of $1.53 in economic activity Every 100 new child care jobs create an additional 31 jobs in other industries

27. Potential Economic Contributions (given a 1% increase in child care expenditures) $1,230,000 in additional child care revenue $651,900 in additional revenue for other industries $405,900 in additional revenue from worker wage spending Total: an additional $2,287,800

28. Policy Recommendations

29. Two priorities • Enhancing the quality of child care • Increase access to affordable child care

30. North Dakota Kids Count • Dr. Richard Rathge, Executive Director • North Dakota Kids Count, Fargo, ND NDSU, IACC 424, Fargo, ND 58105 • Richard.Rathge@ndsu.edu • Phone: (701) 231-8621 • Fax: (701) 231-9730 • URL: www.ndkidscount.org