Industry Spotlight CHILD CARE SERVICES

Small businesses are an important part of the child care industry in Georgia. According to U.S. Census data, of the employees working in the child care services sector within the state, 73 percent are employed at small businesses that have 5-49 employees.1

From 2018-2020, the total number of child care service establishments remained stable, but the number of employees in that sector has increased.1 In 2020 alone, over 1,000 individuals were hired in the industry1, likely due to the additional employees needed to execute Center for Disease Control (CDC) and safety requirements established during the pandemic and replace employees that left the industry during the Covid-19 pandemic. In addition, more employees were likely hired to fill in as staff had more absences due to Covid-19 quarantine periods.

Within that next year, a nationwide shortage of early childhood educators began. According to a study from the National Association for the Education of Young Children (NAEYC) released in 2021, four out of every five respondents from child care centers reported a staffing shortage, with 15 percent stating they had 6-15 fewer workers than needed.2 Of those respondents, 78 percent said insufficient pay was the main reason educators left their positions.2 This shortage made it difficult to keep operating centers open and to start new child care centers.

To combat these challenges, in June of 2022, Georgia Department of Early Care and Learning (DECAL) released a spending plan to distribute $1.97 billion in remaining funds from the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) and American Rescue Plan Act (ARP).3

Through CRRSA, $403,660,875 was distributed to help mitigate the negative financial impacts of the pandemic on Georgia’s child care industry.3

Additionally, $1,573,679,980 was distributed through ARP. A portion of these funds are earmarked as stabilization funds to support child care establishments and ensure the stability of Georgia’s child care industry. The remainder of these funds are allocated as additional Child Care and Development Fund (CCDF) dollars. These funds can be used to support child care providers, families with young children and Georgia’s early childhood education (ECE) workforce. The CCDF dollars can also be used for ECE infrastructure, enhancing child care quality, and increasing access to care.3

Thanks in part to these fundings, DECAL expects the number of licensed child care centers to increase and help stabilize the child care industry across the state.