2023 was a stressful year for childcare. While positive changes took place, funding setbacks took a toll on families and childcare providers across the country. Many childcare centers struggled to hire and retain staff, increasing the cost of childcare and resulting in substandard employment environments.
Looking ahead, 2024 will bring a new set of challenges and opportunities. To consider what you can expect this coming year, here are several childcare trends for 2024.
The U.S. Childcare Landscape: 2024
Since funding from the American Rescue Plan (ARP) ended in September of 2023, the nation experienced many subsidized childcare closures, impacting millions of families. Strained employee wages and benefit cuts led a portion of the workforce to seek different jobs. As a result, the major focus of childcare from all angles this year is affordable care options.
Affordability and equity impact all aspects of childcare including employment, cost of care, customer satisfaction, and child learning outcomes. Consider the following trends as 2024 unfolds.
1. Increasing Childcare Fees
The average household spent $700 per month on childcare during the third quarter of 2023. With federal funding on hold until further notice and the current pattern of inflation, early childhood education (ECE) centers need to raise their prices to stay in business and pay their employees.
Efforts are being made to restore different forms of federal funding to keep childcare centers afloat. To relieve the costs and make childcare affordable for families, this essential industry needs funding.
2. Funding Concerns and the 2024 Election
Even though large federal subsidy programs are over— including ARP’s $40 billion lifeline— childcare funding remains in some states. For example, California legislation recently invested $2 billion into publicly-funded childcare programs and forgiving delinquent charges for families.
Nationwide, lower-income families widely rely on federal funding to meet their childcare needs so parents can work. With rising care costs and ongoing state budget concerns, childcare is already a big topic in the 2024 election.
President Biden previously tried to pass childcare reforms for low-income households while political parties explored where funds should go. As of January 2024, there’s no confirmed outcome, which means the 2024 election will likely play a big role in the future of childcare.
3. Childcare Staffing Challenges: Cultural and Economic Issues
Hiring competent childcare workers is still a struggle in today’s economy. Country-wide funding complications trickle down to affect the hiring process of childcare centers, from large childcare branches to small at-home daycares.
The staffing shortage is said to demand large public investments to recover. Since the beginning of the COVID-19 pandemic, childcare as an industry has lost tens of thousands of workers. Although one of the most important jobs in society, childcare professionals receive one of the lowest average wages in the country (about $11.00 per hour). It’s not only difficult to hire new employees, it’s also become increasingly difficult to retain staff.
Funding concerns and a lack of employee satisfaction have shed light on another important issue in recent years: cultural disparities in the workplace. Whether child development is undervalued in society or childcare as a profession is viewed as insignificant, the fact is that childcare staff deserve a livable wage. These social and cultural topics will continue to be addressed in 2024.
4. Innovations in Childcare Technology
One trend to look forward to in 2024 is the continued growth of education technology. Specifically, childcare technology solutions are entering classrooms and home daycares to support care providers and the families they serve every day.
There is an increased adoption of childcare software among directors and staff. Management software offloads administrative tasks and automates important business duties like parent invoicing and child learning assessments. This technology is a cost-effective way to organize tasks, manage childcare staff, and handle childcare finances.
From educational apps designed for young children to childcare management software for teachers and staff, innovative technology will help navigate every change to come in the ECE workforce.
5. Focusing on Mental Health, Early Learning, and Development
Childcare is more than hiring a babysitter. It takes hard work, compassion, dedication, and patience to nurture children through the early years of their lives. In 2024, the science of child development and early education is more important than ever.
Childcare professionals understand more about young children’s brains and how they learn, positioning them as crucial members of the educational community. Moving forward, childcare trends will continue to explore topics of early learning, child development, human communication, and mental health, with an emphasis on how these impact cultural and social diversity.
6. Families Seeking In-Home Care Options
With more parents still working from home, families who can’t afford traditional childcare are considering micro-care options. Instead of paying local childcare centers to provide socially-enriched programs, parents might prefer in-home childcare such as hiring a nanny for more affordable, one-on-one care.
That said, it’s not sustainable for parents who work from home to have their children under the same roof during work hours. Other home-based childcare options include small home daycare centers, family-run childcare offered as needed, and discounted daycare provided by religious or non-profit organizations.
Family, friends, and neighbor caregivers (FFNs) are also more popular options among parents seeking more affordable, home-setting childcare. Although FFNs may not be licensed childcare providers, the right person can still provide quality care in any setting as long as they follow local childcare laws.
Harness the Childcare Opportunities in 2024
To be the best childcare provider you can be, you need to stay aware of the challenges and opportunities in your field. One of the best ways you can do this is to keep up with changing trends, both locally and nationally.
By hiring the right employees, navigating federal funding setbacks, advocating for childcare policy changes, and adopting reliable technology, you can set your childcare business up for success.
As 2024 begins with an unpredictable childcare environment, there are plenty of opportunities within reach. To help you through every part of the journey, Daily Connect offers digital tools and features to enable higher standards of care. Get your free trial today to harness the childcare management solutions every childcare provider needs.
