Lack of affordable childcare costs SC $1.4 billion. ‘Without childcare, parents can’t work.’

Madalynn Warnken struggled to find affordable childcare in Greenville as a single mother of a two-year-old boy, Emmett.

“The whole process of the waiting list and touring and finding an open spot could take up to a year or more,” Warnken said. “It was really hard to find childcare.” 

She’s not alone. 

LaVonda Paul, director and owner of Small Impressions Child Development, says daycare programs often have waiting lists before children can be enrolled. 

“Without question, programs have long wait lists and a huge need for increased workforce. My program is currently licensed for 139 children, but we only have 65 enrolled due to lack of staff,” she said.  

42% of South Carolinians live in a childcare desert, where there are more than three children under the age of five for each licensed care slot, according to a study from business leader member group ReadyNation. 

ReadyNation’s National Director Nancy Fishman along with Bob Morgan, president and CEO of the South Carolina Chamber of Commerce, and Jack McBride, CEO of Contec, a manufacturer in Spartanburg, presented a report titled “The Growing, Annual Cost of Infant-Toddler Childcare Crisis in South Carolina.” 

Presented Thursday morning at Small Impressions Child Development Center in Taylors, the report documented the financial impact the childcare crisis has on South Carolina families, businesses and taxpayers. 

The report found the childcare crisis costs the nation $122 billion in lost earnings, productivity and revenue each year. In 2018, a similar study found the crisis cost $57 billion a year. 

In South Carolina, the lack of reliable childcare for working parents costs the state $1.4 billion in annual costs. 

“Without childcare, parents can’t work. The childcare workforce is the workforce behind every other workforce,” Morgan said Thursday morning. 

The study found businesses lose an average of $1,640 per working parent in reduced revenue and in extra hiring costs. 

Not only does it affect businesses and taxpayers, but the cost of childcare can also be burdensome for parents. The study found infant care in a center in South Carolina averages $9,048 per year, representing 9% of the median annual income of a married couple family in the state. 

Childcare can also be important for not only a working family but for the child itself. For example, Paul told the story of a child who was not talking. When she let the parent know of the developmental delay, she was able to connect the child to resources. Paul says the child “soared like an eagle.” 

“This is the foundation,” Paul says. 

Despite all the work that goes into daycare, the mean wage for childcare providers in South Carolina is $25,050 annually, equating to about $12 per hour. Preschool teachers earn $33,520 annually and kindergarten teachers earn $52,960 annually, according to the report. 

This often means a higher turnover rate for daycare staff, worsening a crisis within accessible childcare. 

The study also called on South Carolina policymakers to promote access to affordable infant and toddler care. 

“We know businesses play a role in solving the childcare crisis through onsite childcare, financial support for employees to access childcare,” Morgan said. But he also acknowledged businesses cannot do it alone, which is why ReadyNation is calling on policymakers to address the childcare crisis in South Carolina.