Hoosier State Today

The Indiana Chamber of Commerce has released a new report, in collaboration with the U.S. Chamber of Commerce Foundation and Early Learning Indiana, that examines the economic impact of childcare challenges in Indiana. The report is part of the broader "Untapped Potential" study, which covers over a dozen U.S. states and highlights the costs and opportunities related to childcare for states, employers, and working parents.

Research conducted in March indicates that Indiana's economy misses out on an estimated $4.22 billion annually due to childcare issues, including a $1.17 billion annual loss in tax revenue. Additionally, 57% of parents with young children reported missing work or class at least once during the surveyed three-month period for childcare-related reasons. Of those who experienced employment disruptions in the past year, 40% left the workforce directly due to these issues.

The report also reveals that employee turnover and absenteeism related to childcare cost Indiana employers approximately $3.05 billion annually.

"Childcare access and affordability issues continue to hold back the Hoosier workforce and future economic growth for our state," said Vanessa Green Sinders, President and CEO of the Indiana Chamber of Commerce. "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."

Studies have highlighted the developmental benefits of high-quality childcare for young children, noting better school performance, lower dropout rates, and higher test scores.

"Hundreds of thousands of Hoosier children need high-quality early learning experiences to thrive in school and beyond," said 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."

The findings present a multifaceted issue where adequate childcare is crucial for labor force participation—a significant concern as Indiana strives for job growth. The state ranks 27th in labor force participation compared to other states; many parents may be unable to continue working without sufficient childcare options.

Indiana’s unemployment rate stands at 3.5%, tying it for 27th among U.S. states. The analysis suggests that resolving childcare issues could help maximize economic performance by closing this gap.

The full report is available at www.indianachamber.com/education.