'Childcare access and affordability issues continue to hold back the Hoosier workforce and future economic growth for our state'
The Indiana Chamber of Commerce on Tuesday released a new report, in partnership with the U.S. Chamber of Commerce Foundation and Early Learning Indiana, examining the impact of childcare challenges on Indiana’s state economy. The report is part of a broader “Untapped Potential” study of more than a dozen U.S. states that reveals the related costs and opportunities to unlock economic potential for states, employers and working parents.
The study, supported by research that took place in March, found that Indiana misses an estimated $4.22 billion annually for the state’s economy, including a $1.17 billion annual loss in tax revenue, due to childcare issues. Additionally, 57 percent of parents of young children missed work or class at least once in the surveyed three-month span for childcare-related reasons and 40 percent of parents that experienced such employment disruptions in the prior year reported leaving the workforce as a direct result of childcare-related issues.
Further demonstrating the workforce impact, the report also reveals childcare-related employee turnover and absenteeism costs Indiana employers an estimated $3.05 billion annually.
“Childcare access and affordability issues continue to hold back the Hoosier workforce and future economic growth for our state,” Indiana Chamber President and CEO Vanessa Green Sinders said. “This report brings into focus just how important it is to solve these childcare challenges. While daunting, we see creative solutions emerging across Indiana and we’re confident that through sustained advocacy and collaboration, we can keep making progress to help our citizens and employers.”
Numerous studies have also highlighted the developmental benefits of high-quality childcare for young children. Children given appropriate childcare perform better in school, are less likely to drop out and achieve higher test scores.
“Hundreds of thousands of Hoosier children need high-quality early learning experiences to thrive in school and beyond,” says Maureen Weber, president and CEO of Early Learning Indiana. “For the business community, this report shows a two-fold impact as parents are forced to leave today’s workforce while tomorrow’s workers cannot reach their full potential. We will continue our work with partners in government, business and the philanthropic community to ensure high-quality early learning opportunities for all Indiana children.”
Findings present the issue as multifaceted. Childcare is a central determinant in whether and how reliably a parent can participate in the labor force, a reality that is on full display as the state continues to push for job growth. Indiana ranks 27th in labor force participation relative to other states, and findings indicate many parents may not be able to continue working without adequate childcare options.
The childcare coverage gap in Indiana is also a hindrance to the state’s potential for growth. Indiana has an unemployment rate of 3.5 percent, tying it for 27th among U.S. states, and this analysis shows that childcare issues may be preventing Indiana from maximizing its economic performance.
To view the full report, visit www.indianachamber.com/education.
"Improving Outcomes, Together" theme for National EMS Week
Candidates can begin filing for school board elections on Tuesday
Indiana Natural Resources Commission to hold public hearing for bobcat rule changes
Single-lane closures to impact State Road 63 near Cayuga
Parke County teenage arrested after biting toddler
Duke Energy breaks ground on Cayuga Energy Complex project
Miller, Vincent lead Parke Heritage Class of 2026
May 15 is National Peace Officers Memorial Day
Indiana Conservation Officers seek help finding track chairs stolen from Fort Harrison State Park
Clay County man among six drug traffickers, including one illegal alien, sentenced to decades in federal prison
110th running of the Indianapolis 500 a sellout, local TV delay lifted
Projects wanted for READI 2.0 and Lilly Blight funding
Rockville man nabbed for harmful matter
USDA requires SNAP authorized retailers to carry more real food
Congressman Yakym's staff to hold mobile office hours in Plymouth this month
Indiana state senator working to legalize medical marijuana
“Click It or Ticket” campaign reminds Hoosiers to buckle up
IDEM introduces new “Local Air Quality Advisory” for short‑term conditions
