Economic impact of childcare supply

Childcare isn't just a family issue — it's an economic development issue.

A report from the U.S. Chamber of Commerce Foundation, produced in partnership with the Grand Rapids Chamber and Michigan Chamber of Commerce, found that childcare challenges cost Michigan's economy an estimated $2.88 billion annually through employer losses from turnover and absenteeism and lost state tax revenue.

Closer to home, a 2024 regional assessment by the Early Childhood Education Task Force of the Upper Peninsula found that in much of the U.P., there are three or more children competing for every licensed childcare spot — and in some areas, no licensed spots at all.

Over half of U.P. families surveyed were spending more than double the federally defined threshold for "affordable" childcare, and employers reported that childcare challenges were driving absenteeism, turnover, and lost recruitment. Addressing childcare supply is essential to attracting and retaining the workforce our communities need to grow.

As a partner in the U.P. Regional Child Care Coalition, we can connect employers and childcare entrepreneurs with local resources, technical assistance, and programs.

Learn more about childcare programs for employers and entrepreneurs.

Understanding the Issue

The MSU Child Care Mapping Project, supported by MiLEAP, tracks Michigan's childcare landscape in real time — including where deserts are growing or shrinking and how state investments are flowing. It's a good resource for anyone trying to understand the scope of the problem or make the case for action in their community.

The ECE Task Force of the Upper Peninsula's 2024 Regional Action Plan offers a deep look at childcare supply, demand, and barriers specific to our region, drawing on data from employer and parent surveys, as well as assessments of municipal zoning and available building stock across all 15 U.P. counties.