Poverty-level wages pose urgent problem for US childcare, study finds

A new report from the Center for the Study of Child Care Employment (CSCCE) at UC Berkeley finds that child care workers in every state struggle with poverty-level wages, even as they nurture and educate our children in the most important years of development.

The 2024 Early Childhood Workforce Index shows that nationally:

• Early childhood educators are paid a median wage of $13.07/hour, from $10.60 in Louisiana to $18.23 in the District of Columbia;
• Those hourly rates are not a living wage for a single adult in any state;
• Nearly half (43%) of childcare workers’ families survive on public assistance like food stamps and Medicaid.

The financial struggles of child care providers and their teachers have gotten worse as federal COVID-era subsidies have expired. “We’re at a crossroads,” said report lead author Caitlin McLean, CSCCE Director of Multistate and International Programs.

“Federal relief funding for child care is gone, and November elections will bring new leadership in 2025 and beyond. This is a critical time to step up, not back for these skilled educators whose support is so crucial for children, families, and the economy.”

“Imagine the impact of public investment that fairly compensates early educators for the important work they do,” said Lea Austin, CSCCE Executive Director and co-author of the report. “We’d see a more stable workforce, and families could find quality, affordable care.”

The report offers guidance to advocates, states, and the federal government on the policies requiring attention. Interactive maps enable you to view and compare workforce demographics and state policies on compensation. Easily see which states are leaders in supporting early educators—and which ones are falling behind.

Economic insecurity remains rampant

The report affirms that early educators have one of the worst-paid jobs in the nation. They earn less than 97% of all other occupations. As difficult as it is for anyone to be an early educator in America, conditions are even more severe for Black and Latina women who, on average, are paid up to $8,000 less than their peers each year, even when they hold equivalent educational degrees.

Pandemic relief and a return of cuts

The essential role early childhood educators play in supporting families and the economy was recognized through the American Rescue Plan Act (ARPA). ARPA and other COVID-19 relief funding provided a lifeline when the pandemic forced many programs to close and at least 100,000 child care jobs were lost.

“Federal emergency funding made my family’s finances the most stable they have ever been,” said Corrine Hendrickson, a home-based child care provider in Wisconsin.

The Index details ARPA-funded initiatives across the states. In Utah, for example, programs paying at least half their staff a minimum of $15 per hour were offered additional public funding.

Now, these cuts are forcing many programs to close or increase costs to parents. “Because our state refuses to invest in child care, I’ve been forced to raise rates $70 a week over the last year,” said Hendrickson, who operates a five-star accredited program. “Yet I’m earning $12 an hour.”

Policies created this mess and policies can fix it

The Index also highlights promising state initiatives. “The Early Childhood Workforce Index shows that early educators’ poor working conditions are not inevitable, but a product of policy choices,” said McLean. “States as varied as Illinois, Kentucky, and Vermont are showing that state and local leaders have the power and authority to advance policies to support the early childhood workforce, with or without federal funding.”

Recommended policies include:

Invest in direct public funding to provide early educators with a living wage, health care, and safe, supportive work environments. For an estimate of a values-based budget for each state, see Financing Early Educator Quality.

Prioritize compensation standards and a wage floor across all settings so no one working in early care and education earns less than a regionally assessed living wage. Create a wage/salary scale that sets minimum standards for pay, accounting for job role, experience, and education levels.

Adopt system-level workplace standards such as guidance on appropriate levels of paid time off for vacation and sick leave, paid planning and professional development time, and mental health and teaching supports.