Childcare Centers Statistics in US 2025 | Key Facts

Childcare Centers in the US 2025

Childcare centers in the United States represent a critical infrastructure supporting the modern American economy, enabling millions of working parents to participate in the workforce while ensuring young children receive care and early education during their formative years. As of 2024, the nation had 92,550 licensed childcare centers operating across 40 states with complete data, alongside 98,294 licensed family childcare homes in 39 states, creating a diverse landscape of care options serving millions of families. The childcare industry employs over 942,000 workers across approximately 77,000 establishments nationwide, with 58% of childcare establishments employing fewer than 10 employees, highlighting the predominantly small-scale nature of most providers.

The importance of childcare centers extends far beyond their immediate function, as approximately 6.38 million parents nationwide, representing 58% of working Americans with children, depend on childcare facilities to maintain employment. The industry’s gross output reached $63 billion in 2019, accounting for 0.3% of U.S. GDP, though experts estimate this figure could be substantially higher if the system functioned optimally. However, the sector faces unprecedented challenges in 2025, with the expiration of pandemic-era federal stabilization funding creating financial pressures on providers, while persistent workforce shortages driven by poverty-level wages threaten the availability and quality of care. The U.S. childcare market was valued at $65.15 billion in 2024 and is projected to reach $109.88 billion by 2033, growing at a compound annual growth rate of 6.02%, driven by increasing numbers of dual-income and single-parent households, growing recognition of early childhood education’s importance, and government initiatives supporting working families.

Interesting Facts and Latest Statistics on Childcare Centers in the US 2025

Data sources: Child Care Aware of America Price & Supply Report (2024), U.S. Bureau of Labor Statistics QCEW (Q1 2023), Grand View Research Market Analysis (2024), Center for the Study of Child Care Employment Index (2024)

The childcare center landscape in the United States shows signs of recovery and growth following pandemic-era disruptions. The number of licensed childcare centers reached 92,550 in 2024 across 40 states with complete data, representing a 1.5% increase from 2023 and continuing an upward trend observed since 2020. Even more encouragingly, licensed family childcare homes increased by 4.3% to 98,294 in 2024, marking the first upward movement in this category after several years of consistent decline. The total childcare services industry comprises approximately 77,000 establishments employing over 942,000 workers and generating $7.2 billion in total quarterly wages as of the first quarter of 2023.

The economic burden on families utilizing childcare centers remains extraordinarily high. The national average annual cost of childcare reached $13,128 in 2024, representing a staggering $1,546 increase from $11,582 in 2023—a single-year jump that far outpaced general inflation. Over the five-year period from 2020 to 2024, childcare prices increased by 29% compared to 22% for overall prices, meaning childcare costs grew 7% more than general inflation. This places childcare costs at the top of family budgets, requiring 10% of a married couple with children’s median income or 35% of a single parent with children’s median household income to afford. For single-parent families specifically, center-based infant care consumes 39% of total income. Approximately 6.38 million parents nationwide, representing 58% of working Americans with children, depend on childcare facilities to maintain employment, underscoring the sector’s critical role in supporting the broader economy despite its internal challenges.

Number and Distribution of Childcare Centers in the US 2024

Data sources: Child Care Aware of America annual reports (2022-2024), U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages (Q1 2023)

The number and distribution of childcare centers across the United States demonstrates ongoing recovery from pandemic-era closures while revealing persistent structural challenges. Licensed childcare centers totaled 92,550 in 2024 across 40 states with complete data, up from 84,592 in 2020, representing substantial growth of nearly 8,000 centers over four years. The year-over-year increase of 1.5% from 2023 to 2024 continues the upward trajectory, though growth has moderated from the 3% increase observed between 2021 and 2022 when recovery was most rapid. This steady expansion of center-based care reflects both demand for services as parents return to in-person work and the availability of pandemic relief funding that enabled providers to survive closure periods and reopen operations.

Licensed family childcare homes present a more complex picture, with 98,294 homes operating in 2024 across 39 states with available data. After years of consistent decline—dropping from 99,958 in 2020 to 94,227 in 2023—the 4.3% increase in 2024 marks a significant reversal. However, much of this increase can be attributed to just four states—California, Kansas, Massachusetts, and Virginia—which all experienced increases exceeding 10%. While a few other states saw modest gains, family childcare programs continue falling in 29 of 39 states with complete data, indicating that the national upward trend masks continued decline in most jurisdictions. The U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages reported approximately 77,000 childcare services establishments nationwide in the first quarter of 2023, with 58% employing fewer than 10 workers, underscoring the predominance of small, often family-run operations that face unique challenges in weathering economic instability and competing for workers in tight labor markets.

Childcare Costs and Affordability in the US 2024

Data sources: Child Care Aware of America Price & Supply Report (2024), First Five Years Fund State Fact Sheets (2024), Center for American Progress data dashboard

Childcare costs in the United States have reached crisis levels, with the national average annual cost hitting $13,128 in 2024, up from $11,582 in 2023—a single-year increase of $1,546 that represents one of the steepest jumps in recent memory. Over the five-year period from 2020 to 2024, childcare prices surged by 29%, significantly outpacing the 22% increase in overall consumer prices during the same period, meaning childcare costs grew 7% more than general inflation. This relentless price escalation has pushed childcare to the top of family budgets, surpassing housing, college tuition, transportation, food, and healthcare costs in the majority of states, fundamentally reshaping household financial priorities and constraints.

The burden falls disproportionately on different family structures. For a married couple with children, affording the national average childcare cost requires 10% of median household income, already exceeding the 7% affordability threshold established by the U.S. Department of Health and Human Services for families receiving federal subsidies. For single-parent households, the situation is far more dire, with childcare consuming 35% of median household income—five times the recommended affordability standard. Single-parent families spending on center-based infant care for one child face the steepest burden at 39% of total income, forcing impossible choices between quality care and basic necessities. When examining the cost of caring for two children in center-based programs, the annual expense exceeds average annual mortgage payments in 45 states plus Washington D.C. and surpasses median annual rental payments in 49 states plus D.C., demonstrating that childcare has become the single largest or second-largest expense for most American families with young children, fundamentally limiting economic opportunity and workforce participation.

Childcare Workforce Demographics and Wages in the US 2024

Data sources: U.S. Bureau of Labor Statistics QCEW (Q1 2023), Center for the Study of Child Care Employment Workforce Index (2024), 2021 American Community Survey

The childcare workforce in the United States comprises over 942,000 workers employed across approximately 77,000 childcare services establishments as of the first quarter of 2023, representing a critical but deeply undervalued segment of the American labor force. These workers earn a median hourly wage of just $13.07, ranging from $10.60 in Louisiana to $18.23 in Washington D.C., with no state paying rates that constitute a living wage for even a single adult with no children. When compared to over 500 other occupations, the early childhood education workforce ranks at the 3rd percentile for annual earnings, meaning 97% of all other occupations pay higher wages—only 3% of occupational categories earn less than childcare workers.

Recent wage growth has been insufficient to close the compensation gap. While wages for all occupations rose 4.9% nationally in recent years after adjusting for inflation, the childcare workforce experienced only 4.6% growth, trailing the national average. More concerningly, competing industries that childcare workers frequently leave for offer substantially better wage growth: fast food wages increased 5.2% and retail wages jumped 6.8%, making these sectors increasingly attractive alternatives despite their own low-wage status. The inadequate compensation has devastating consequences, with 43% of childcare worker families depending on at least one public safety net program such as Medicaid or food stamps, costing taxpayers an estimated $4.7 billion annually to subsidize the insufficient earnings of these essential workers. The 2021 American Community Survey counted 380,451 childcare workers alongside 777,894 personal care aides and 261,045 home health aides, representing the broader early care and education ecosystem. This chronic undercompensation drives the sector’s persistent workforce crisis, with high turnover rates and recruitment difficulties threatening the availability and stability of childcare services that millions of families depend upon.

Childcare Workforce Benefits and Working Conditions in the US 2024

Data sources: Center for the Study of Child Care Employment Workforce Index (2024), U.S. Bureau of Labor Statistics employee benefits data (2023-2024), State workforce surveys

Childcare workforce benefits and working conditions reveal significant gaps compared to other sectors, contributing to recruitment and retention challenges. Only 50% of center-based lead teachers have any retirement savings, and the situation is far worse for family childcare providers, where just 21% have retirement savings. These figures stand in stark contrast to the approximately 67% of workers throughout the United States who have some form of retirement savings, illustrating how childcare workers face not only immediate financial insecurity but also severely compromised ability to prepare for their own old age. The lack of retirement benefits is particularly concerning given that 30% of center-based teaching staff and about 20% of home-based staff hold bachelor’s degrees or higher, indicating substantial educational investment that is not reflected in compensation or benefits.

Access to employer-provided childcare benefits for workers in other industries remains limited, though variability exists across sectors. As of March 2023, only 13% of full-time and 6% of part-time private industry workers have access to employer-provided childcare benefits, according to the Bureau of Labor Statistics. These figures vary substantially by income level, with higher-earning workers more than three times as likely to have access compared to lower-earning workers, disproportionately affecting people of color who are overrepresented in low-wage positions. The healthcare sector shows somewhat better provision, with 35% of private industry hospital workers and 29% of state and local government hospital workers having access to childcare benefits in 2024. Recent advocacy has yielded some victories: Child Care Providers United, the union representing home-based early educators enrolling state-subsidized children, successfully negotiated for an $80-million retirement fund and a $100-million health insurance fund as part of its most recent contract in California, representing groundbreaking though limited progress since these benefits apply only to providers enrolling subsidized children, excluding many others in the field.

Racial and Gender Disparities in Childcare Workforce in the US 2024

Data sources: Center for the Study of Child Care Employment Workforce Index (2024), Workforce demographic analyses, Early educator listening sessions

The childcare workforce is characterized by significant racial and gender disparities that compound the sector’s broader compensation challenges. The workforce is predominantly composed of women, many of whom are women of color, with 40% of childcare workers identifying as women of color according to recent analyses. This demographic composition reflects historical patterns of care work being assigned primarily to women and particularly to women of color, continuing long-standing labor market inequalities. The gender concentration creates vulnerabilities, as the pandemic’s disproportionate impact on service sector jobs—dubbed a “she-cession”—hit the childcare workforce particularly hard.

Even more troubling are the substantial wage gaps by race and ethnicity that persist even after controlling for educational qualifications, job roles, and geographic location. White early educators earn an average of $8,000 more per year than Black early educators, a disparity that cannot be explained by differences in education level, years of experience, or position held. Latina educators face similarly large wage gaps compared to their White counterparts, with differences reaching up to $8,000 annually. These gaps persist when comparing educators holding equivalent educational degrees—a Black or Latina educator with a bachelor’s degree earns significantly less than a White educator with the same credential. The wage differential exists even after controlling for job roles (whether working as aides/assistants or teachers) and regional locations (across the four U.S. Census Bureau regions), indicating systemic undervaluation of the work performed by educators of color. As one early educator stated in a virtual convening: “Value us, value us in our wages,” capturing the frustration of skilled professionals whose essential work sustaining the economy goes unrecognized in their paychecks, with the burden falling disproportionately on women of color who can least afford such discrimination.

Impact of Pandemic Relief Funding on Childcare Centers in the US 2023-2024

Data sources: U.S. Department of Health and Human Services Office of Child Care, Center for the Study of Child Care Employment, Monthly Labor Review (Bureau of Labor Statistics, 2024)

The American Rescue Plan (ARP) enacted in March 2021 provided $24 billion for the Child Care Stabilization Program, representing the single largest federal investment in childcare in American history. As of December 31, 2022, these stabilization grants had served more than 220,000 childcare providers, affecting as many as 9.6 million children across the nation. Providers used these awards to address critical operational costs including wages and benefits, rent and utilities, program materials and supplies, and enhanced cleaning and sanitation necessitated by pandemic health protocols. The funding enabled many providers to survive mandated closures, capacity restrictions, and other COVID-19-related disruptions that devastated the sector, with center-based care employment falling dramatically and only gradually recovering.

However, these federal stabilization funds came with strict expiration dates: states, territories, and tribes were required to fully expend their Child Care Stabilization allocations by September 30, 2023, and discretionary Child Care and Development Fund (CCDF) allocations by September 2024. The majority of states used pandemic relief funds for workforce initiatives including wage increases, wage supplements, scholarship expansions, and mental health supports, with more than 45 compensation and financial relief initiatives already ended following ARPA stabilization funding expiration. States including Utah (which offered programs additional funding if paying staff minimum $15/hour), Kentucky (which incentivized wage increases through stabilization grants), and Ohio (which eliminated waitlists for wage stipend programs) saw meaningful improvements, but these gains are threatened without sustained funding. New research points to considerable difficulty across the childcare industry as it continues operating absent stabilization funds, with many providers forced to raise rates on families, reduce services, or close entirely. The temporary expansion of the Child and Dependent Care Tax Credit in 2021 benefited more than 6.4 million families by providing them with over $2,000 on average to offset care costs, but this enhancement also expired, leaving families and providers facing the pre-pandemic crisis conditions that federal relief temporarily alleviated.

State Investments in Childcare Systems in the US 2023-2024

Data sources: Center for American Progress state policy tracking, State legislative appropriations, First Five Years Fund resources

Multiple states have made significant investments in their childcare systems in 2023 and 2024, recognizing that federal pandemic relief alone was insufficient to address longstanding systemic challenges. California leads with some of the nation’s most substantial commitments: $600 million over two years to fund a 20% average pay increase for more than 40,000 childcare providers who receive subsidies, along with $80 million to create the nation’s first retirement fund for childcare providers and $100 million for healthcare coverage. These investments came through a union agreement with Child Care Providers United and represent groundbreaking though geographically limited progress. The state also changed how subsidy reimbursement rates are calculated, moving from market rate surveys to cost modeling of the true cost of care.

Massachusetts invested $475 million in new state funding for its Commonwealth Cares for Children grants to offset provider operating costs including higher educator pay, plus increased its Early Education and Care Staff Pilot Program investment to a total of $15 million in fiscal year 2024. Illinois allocated $130 million through its Smart Start initiative for workforce compensation contracts to stabilize providers and raise worker wages. Minnesota committed $316 million over two years for a new grant program enabling centers to increase wages by an estimated $400 per month for full-time employees, while also increasing subsidy reimbursement rates to the 75th percentile of market surveys. Vermont invested $125 million annually to eliminate copayments for families at or below 175% of the federal poverty level, expand eligibility up to 575% of the poverty level, and address special needs gaps. Maine doubled its wage stipend investments from $200 to $400 on average, while New Jersey’s 2024 budget added $112 million to increase reimbursement rates and make permanent supplemental payments of $300 for full-time and $150 for part-time care initially provided during the pandemic. These state efforts demonstrate recognition that sustainable childcare systems require ongoing public investment, though the patchwork nature of state policies creates significant geographic inequities in workforce compensation and family access.

Economic Impact of Childcare Shortages in the US 2024

Data sources: U.S. Chamber of Commerce Foundation studies, Center for American Progress surveys, Economist Impact analysis, KPMG research (2024)

The economic impact of childcare shortages extends far beyond individual family struggles, creating substantial drag on overall economic growth and productivity. American firms lose an estimated $12.7 billion each year as a result of employee childcare issues, including absenteeism, reduced productivity, and employee turnover. A U.S. Chamber of Commerce Foundation study found that breakdowns in childcare cause states to lose an average of $1 billion in economic activity annually, with part of this loss stemming from parents missing work because quality childcare was unavailable or unaffordable. According to a 2020 survey, 58% of working parents reported leaving work at some point because they were unable to find childcare solutions meeting their needs.

The workforce participation effects fall disproportionately on women, who comprise the super-majority of the childcare workforce itself and bear primary caregiving responsibilities in most families. Approximately 32% of women cited the need to be home to care for family members as a barrier to returning to work, though this number has been trending downward from 86% of mothers who cited home and family care as the leading reason for workforce exit in 1989. According to the most recent statistics, 1.1 million respondents overall reported that due to childcare interruptions in the previous four weeks, one adult in their family did not search for a job in order to care for children. An Economist Impact study found that increased access to childcare could result in millions of women entering the workforce, potentially increasing GDP growth between 0.19% to 1.09% per country per year. In 2019, childcare accounted for 0.3% of U.S. GDP with a gross output of $63 billion—and experts note this figure could be substantially higher if the system functioned optimally, as current shortages prevent many parents from working to their full potential or participating in the labor force at all, representing massive foregone economic output and productivity.

Childcare Deserts and Access Challenges in the US 2024

Data sources: Center for American Progress surveys and analyses, U.S. Chamber of Commerce research, Labor force participation data

Access to childcare remains severely constrained across much of the United States, with 51% of Americans living in “childcare deserts” as of 2018—areas where access to childcare facilities is either non-existent or where the number of children is three times higher than the number of available slots at licensed facilities. This geographic maldistribution means that millions of families face insurmountable barriers to accessing care regardless of their ability to pay, as services simply do not exist in sufficient quantity in their communities. About half of American families report that finding childcare is currently difficult, with 27% specifically citing insufficient available childcare spaces as the primary obstacle, ahead of even cost concerns in some surveys.The situation has deteriorated in recent years, with 46% of American families claiming that obtaining childcare is currently more difficult than during the pre-pandemic period, despite employment in the sector rebounding to over 940,000 workers.

The sector remains more than 30,000 jobs below February 2020 levels as of November 2023, and while many programs have openings, they struggle to hire workers to fill empty slots due to poverty-level wages that cannot compete with other employment options. Of the 11 million working parents in the United States, 31% are “childcare independent”, meaning they do not utilize formal childcare arrangements, often relying instead on family members, particularly grandmothers, or making other informal arrangements that may compromise parental employment stability and child development opportunities. The childcare barrier contributes to the U.S. currently having over 6 million unemployed workers and an additional 1.6 million marginally attached workers—individuals who want to work but are not actively seeking employment—as it prevents many parents, particularly mothers, from fully participating in the workforce. These access challenges create a vicious cycle: inadequate compensation drives workforce shortages, which limit the number of available childcare slots, which in turn prevents parents from working, further constraining economic growth and tax revenues that could fund improvements to the system.

Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.

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