Shortage of affordable day care hurting small businesses, employees, poll says
Children play at Michele Kessler's at-home day care in Bayport, July 2, 2020. A poll finds a majority small businesses say their employees have struggled with a day care shortage. Credit: Johnny Milano
A lack of affordable child care is negatively impacting nearly six in 10 small businesses in New York State as employees take time off to care for youngsters, according to a poll released on Monday.
The survey, commissioned by the investment bank Goldman Sachs, found "59% of small-business owners and their employees have faced child care challenges during the pandemic," the bank said.
Nearly nine in 10 entrepreneurs in the state said they want Congress to increase the number of affordable day care slots and to subsidize paid family and medical leave for small employers.
The poll of 125 small-business owners was conducted Jan. 10-13 by Babson College in Massachusetts and David Binder Research in California. Fifty-eight percent of those surveyed are women.
Locally, 71% of children under 6 live in households where all adults are working. The average cost of licensed care is almost $17,000 per year per child, meaning most families spend 30% or more of their income on day care services, according to a June report by the Long Island Regional Economic Development Council.
The council, which recommends projects for state funding, said Nassau and Suffolk counties face a severe shortage of affordable child care slots, which has only worsened with day care centers shutting down permanently because of the pandemic. About 8,000 people work in the industry locally.
The Long Island Association, the region’s most prominent business group, has long lobbied for more government funding of day care.
Responding to the poll results, LIA CEO Matt Cohen said on Monday, "Childcare is an economic issue, and safe, accessible and affordable child care is a key factor to small-business success and recovery from the pandemic."
Besides seeking greater availability of day care, small-business owners in New York State said they are negatively affected by the omicron surge, inflation and supply chain problems, according to the poll results.
More than eight in 10 entrepreneurs said the federal government should provide additional emergency aid to help them in the pandemic and more than nine in 10 want Congress to approve additional funding for COVID-19 Economic Injury Disaster Loans.
The poll of New Yorkers was part of a national survey paid for by Goldman Sachs for its small-business support program.
Jessica Johnson-Cope, program chair and President of Johnson Security Bureau Inc., a provider of security guards based in the Bronx, said, "The relentless pressures to pivot brought by this never-ending pandemic, coupled with the difficult labor market, inflation and supply chain constraints are all pushing small businesses to the brink."
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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