Childcare Workers In NC Struggle To Afford Care For Their Own Kids

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Childcare workers in North Carolina can struggle to afford care for their own children, adding pressure to an industry already facing recruitment and retention challenges. Some centers provide care directly, while a Watauga County initiative helped 18 employees with 22 children; the state has not announced a statewide subsidy in the source report.

Childcare workers in North Carolina are struggling to afford care for their own children, prompting some providers and local organizations to offer financial help as centers contend with recruitment and retention challenges. A report by The 74 describes benefits at a Durham center and a Watauga County program, while noting that North Carolina has not adopted the statewide subsidy model described in Kentucky.

At Kate’s Korner in Durham, owner Kate Goodwin says the center provides employees with free childcare as a workplace benefit. Some staff use vouchers; for employees who cannot, the center covers all but one week of care each month, according to the report. Goodwin said the center absorbs most of the expense, accepting slimmer business margins to provide the benefit.

The approach is not unique. In a survey of about 1,200 childcare providers across North Carolina, 61% of directors said their programs already offered a childcare benefit to employees. The report does not specify how those benefits were funded or what share of workers could use them.

In Watauga County, the Boone Area Chamber of Commerce Foundation launched a local assistance initiative last year, using $40,000 from local donors and businesses. It helped 18 childcare employees with 22 children, providing an average of $684 per child, the report said. The funding and number of families served describe that initiative; they do not establish that the program covers all local workers or their full childcare bills.

Childcare Costs Weigh on Staffing

The issue links workers’ household budgets to the availability of care for families across the state. When childcare staff cannot afford care for their own children, some may leave the field for better-paid work, according to the report. Providers can then face staffing shortages that lead to smaller classrooms, shorter operating hours or reduced enrollment, limiting the number of families centers can serve.

The report cites an Appalachian State University study finding that childcare workers earned an average of $30,600 a year, while the median monthly childcare cost was $900. Based on those figures, one child in care would cost roughly a third of that average annual gross income over a year. That calculation compares the study’s average wage with its reported median monthly cost; individual wages, fees and access to subsidies vary.

For parents, a center’s staffing capacity can affect whether they can find care that fits their work schedule. For employers beyond the childcare sector, limited access to care can also make it harder for parents to work. The report describes the Watauga assistance program in part as a workforce measure, but does not provide an evaluation showing its effects on retention or countywide labor participation.

Local Benefits and State Models

North Carolina’s labor force participation rate was reported as about 58%, compared with roughly 61% nationally. The report attributes those figures to the share of people working or actively seeking work and says business leaders view unaffordable childcare as one factor affecting participation. It does not establish that childcare costs alone account for the difference.

Watauga’s initiative is a local response to childcare shortages and the cost burden on workers. The report also situates it within efforts to support providers after the loss of federal funding that had helped stabilize the industry. It does not give a statewide total for the funding loss or specify how much financial support remains available to individual centers.

Kentucky offers a different model. It started a state-funded Free Child Care for Child Care Workers Program in 2022, for workers employed at least 20 hours a week at a center, regardless of household income. Kate Shanks of the Kentucky Chamber of Commerce said more than 5,300 childcare-worker families benefited over the past year and that lawmakers made the program permanent earlier this year. The report says at least nine other states have since enacted similar policies, citing the Kentucky Chamber of Commerce.

“As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make.”

— Kate Goodwin, owner of Kate’s Korner

Scale and Long-Term Results

The report does not say whether North Carolina policymakers are developing a statewide subsidy, how much such a policy might cost, or which workers would qualify. Goodwin supports a statewide program, but her comments are not evidence that one has been proposed or approved.

It is also unclear whether the Watauga initiative will receive additional funding or continue at the same level. The report gives the number of employees and children assisted, but does not describe an independent evaluation, changes in staff retention, or how the benefit compared with families’ total childcare costs. The statewide provider survey reports how many directors offered some form of benefit, not its value, availability to every employee or effect on hiring.

Funding and Policy Decisions Ahead

The immediate question is whether local donors and businesses will continue to fund Watauga’s assistance and whether other North Carolina communities will adopt similar programs. The report does not name a scheduled funding decision or a confirmed next step from state officials.

North Carolina providers and policymakers could look to Kentucky’s state-funded program and other states’ policies as they consider possible approaches, but the report does not establish that the state plans to follow that model. Any proposal would need to clarify eligibility, funding sources and whether support covers part or all of a worker’s childcare costs. Until then, benefits depend on individual centers and local initiatives, with the scope of assistance varying by program.

Key Questions

What help can North Carolina childcare workers get for their own children?

Support varies. Some centers provide childcare as an employee benefit, and Watauga County’s local initiative has offered financial assistance. The report does not describe one statewide program available to all workers.

How many workers did the Watauga County initiative assist?

The Boone Area Chamber of Commerce Foundation program assisted 18 childcare employees with 22 children. It provided an average of $684 per child, using $40,000 from local donors and businesses.

Does North Carolina have a statewide childcare subsidy for childcare workers?

The source report does not identify a North Carolina statewide subsidy for childcare workers. Goodwin supports creating one, but the report does not say that state officials have proposed or approved it.

What does Kentucky’s program provide?

Kentucky’s program, launched in 2022, subsidizes care for workers employed at least 20 hours a week at a childcare center, regardless of household income. The report cites the Kentucky Chamber of Commerce for participation figures and says the program was made permanent earlier this year.

Source: rss