Four network collaboratives will receive $200,000 grants to support their efforts to create better jobs for better access to childcare

WASHINGTON, D.C., April 3, 2024 – The National Fund for Workforce Solutions today announced the kickoff of Shifting the Childcare Industry: Better Jobs for Better Access — a new initiative aimed at making childcare more accessible by improving job quality in the sector and pushing for policy and regulatory changes that will boost the number of childcare workers and entrepreneurs operating programs.

The rising cost of living demands that most parents and caregivers work, yet, according to a recent study from ReadyNation, nearly half of these workers have quit or been fired from their jobs due to unstable and unaffordable childcare. Workers who hold lower-wage jobs are especially affected. Job quality is one of the chief causes of this deepening childcare crisis. Despite the high cost of care, it doesn’t translate to living wage salaries for childcare workers — leaving the industry scrambling to fill positions, meet demand, and control costs for working families.

At its core, job quality in the sector is an equity issue — with people of color making up more than a third of the workforce and nearly all early childhood education workers being women. Childcare workers are underpaid and overburdened with expensive credential or degree requirements, while self-employed childcare providers must grapple with regulatory hurdles to meet licensing requirements, or provide care informally and forgo access to public subsidies.[1]

“As champions of workforce equity and experts at convening regional stakeholders for action, the National Fund and our network are compelled to help tackle this crisis that ripples throughout the economy,” said Michelle Rafferty, National Fund chief program officer. “We recognize that fixing the childcare system will take a multi-pronged approach — from policy changes to expansion of the labor pool — but addressing job quality in the sector is a major step toward creating meaningful systemic change.”

The initiative will launch in four communities with generous support from the Truist Foundation, a new funding partner for the National Fund, and the Annie E. Casey Foundation. The National Fund will leverage its tools, experience, and deep relationships with local regional workforce collaboratives to build coalitions and develop solutions tailored to the specific needs of each community.

“Creating high-quality childcare jobs provides a domino effect of positive benefits for communities – from influencing children’s development and enabling parents to participate in the workforce to supporting childcare industry workers and strengthening the entrepreneur ecosystem,” said Lynette Bell, president of Truist Foundation. “Truist Foundation is proud to support the National Fund’s new initiative as we strive for better jobs, better access and better pathways to economic mobility within this critical industry.”

The participating communities are:

Baltimore Workforce Funders Collaborative

The collaborative will focus on childcare job quality challenges and solutions at a time when local stakeholders are working toward successful implementation of the Blueprint for Maryland’s Future — a statewide early childhood and K-12 education systems change effort that will have a significant impact on the childcare industry and workforce. The childcare workforce work group will convene funders, providers, advocates, entrepreneurs, and workers to explore practices and systems that advance equity and job quality in Baltimore’s childcare sector and develop solutions in concert with broader efforts to support the successful implementation of the Blueprint.

Fund for Our Economic Future

The goal is to support family childcare providers in northeast Ohio in reaching the highest quality tier available through Ohio’s Step Up to Quality rating system, while maximizing the level of reimbursement provided by the state. The collaborative will support these small businesses with coaching, training, and resources to help them obtain and/or increase their SUTQ star rating which, in turn, will increase their business income.

Central Iowa Works, United Way Central Iowa

The project will target several key components of the childcare industry in central Iowa to improve childcare job quality at the systems level. It focuses on supporting sustained wage growth for childcare workers by building a business model and identifying successful strategies, exploring pathways between in-home and center-based childcare, and advocating for higher childcare assistance.

Pittsburgh Area Workforce Learning Collaborative, Partner4Work

This project builds on an existing system of collaboration in the early learning sector that began with approaching childcare workforce shortages from the supply side. The collaborative will build off work done in previous job quality efforts and leverage lessons learned from a concurrent effort funded by a local hospital system to improve job quality in the direct care workforce.

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About National Fund for Workforce Solutions

The National Fund for Workforce Solutions envisions an equitable future where all workers have the resources required to thrive, race does not dictate employment outcomes, and all jobs are good jobs. We are a recognized leader in establishing and scaling effective strategies that foster racial equity in the workforce to help communities thrive. Our dynamic national network is comprised of more than 30 regional workforce collaboratives that convene cross-sector stakeholders and align resources toward collective action for greater impact. Our four solutions — activating employers to make jobs better, equipping workers for success, changing systems for improved outcomes, and co-investing for impact — are how we work to achieve our goals. Learn more at www.NationalFund.org.

[1] https://www.americanprogress.org/article/data-dashboard-an-overview-of-child-care-and-early-learning-in-the-united-states/