The The Economic Economic Effect of Effect of Child Care in Child Care in

North North DakotaDakota

Data and analysis prepared by North Dakota KIDS COUNT, 2004

Outline of presentation• Who needs child care?

• What kinds of care do parents use?

• Affordability of child care

• Employment & income of child care workers

• Overall contributions of child care to economy

• Policy recommendations

Who needs child Who needs child care in North care in North Dakota?Dakota?

• Of children under 6:– In two parent homes - 71% had two

employed parents

– In single parent homes - 78% had an employed parent

• Parental employment rates are higher in N.D. than in the U.S.

0102030405060708090

100

North Dakota United States

both parentsworking

single parentworking

Percent of Children under 6 whose Parents were Employed, 2000

0102030405060708090

100

North Dakota United States

both parentsworking

single parentworking

Percent of Children 6-17 whose Parents are Employed, 2000

What kinds of child What kinds of child care do North care do North Dakota parents Dakota parents use?use?

North Dakota Children Enrolled in North Dakota Children Enrolled in Licensed Child Care and Head Licensed Child Care and Head StartStart

Programs, 2002-3Programs, 2002-3

13.2%

4.4%

5.9%

27.5%

49.1%

Head Start & Early HeadStart

Preschool Programs

Before/After SchoolPrograms

Child Care Centers

Licensed Family/GroupPrograms

How affordable is How affordable is child care in North child care in North Dakota?Dakota?

Costs

• Infant care –$88-100 per week per infant

–10-12% of income for family with median income

Average Costs of Licensed Child Care in North Dakota, 2003

Age of

Child

Average Weekly Rate per

Child

Estimated Average

Monthly Rate per Child

Estimated Average

Annual Rate per Child

Child-Care Centers0-11 months $99.48 $397.92 $5,172.96

12-24 months $98.93 $395.72 $5,144.36

24-36 months $93.38 $373.52 $4,855.76

3-5 years $91.20 $364.80 $4,742.40

K-12 years $88.01 $352.04 $4,576.52

Average Costs of Licensed Child Care in North Dakota, 2003

Age of

Child

Average Weekly Rate per

Child

Estimated Average

Monthly Rate per Child

Estimated Average

Annual Rate per Child

Family & Group Programs

0-11 months $87.87 $351.48 $4,569.24

12-24 months $87.56 $350.24 $4,553.12

24-36 months $85.68 $342.72 $4,455.36

3-5 years $84.92 $339.68 $4,415.84

K-12 years $84.05 $336.20 $4,370.60

Employment & Employment & Income of Child Income of Child Care WorkersCare Workers

Employment

• Child care worker is the 10th largest occupation in North Dakota

• Over 6,000 persons are child care workers

Top Ten Occupations in N.D., 2000

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Child Care Workers

Registered Nurses

Nursing, Psychiatric & Home Health Aides

Cashiers

Supervisor/Manager Retail Sales

Elementary & Middle School Teachers

Retail Salespersons

Secretaries & Administrative Assistants

Drivers/Sales Workers & Truck Drivers

Farmers & Ranchers

Men Women

Income

• Child care workers earn 63% of ND median hourly wage

• ND child care workers are well educated– 90% ND teacher assistants have high

school degree– 78% child care workers in U.S. have high

school degree

Workers’ Wages in 2002North

DakotaU.S.

Median Hourly Wage for All Workers $11.12 $13.31

Child-Care WorkersAverage Hourly Wage $7.50 $8.32

Median Hourly Wage $7.06 $7.86

Average Annual Wage $15,590 $17,310

Preschool TeachersAverage Hourly Wage $8.79 $10.45

Median Hourly Wage $7.95 $9.26

Average Annual Wage $18,280 $21,730

Job Turnover

• Nationally– about 1/3 of child care workers leave

their position each year

• North Dakota– 60% of child care teacher assistants

have less than one year at current job

0

10

20

30

40

50

60

70

Head Teacher TeacherAssistant/Aide

Per

cent

of

wor

kers

Less than one year

1-2 years

2+ to 5 years

More than 5 years

Length of Time at Current Job for N.D. Child Care Workers in Licensed Programs, 2002

Overall Economic Overall Economic Contributions of Contributions of Child Care to North Child Care to North DakotaDakota

123

59

31.5

32.7

$0 $20 $40 $60 $80 $100 $120 $140

Total Revenues

Licensed care,children under 6

Licensed care,children 6 & over

Government childcare funds

Millions of dollars

Revenues from Child Care in North Dakota, 2002

Relative contribution of child Relative contribution of child care to NDcare to ND

• Child care revenues are comparable to gross state product of numerous industries

$0

$20

$40

$60

$80

$100

$120

$140

$160

Coal mining Motor vehicleequipment

manufacturing

Insuranceagents &services

Legal services Printing &publishing

Child carerevenues

North Dakota Gross State Product for Select Industries, 2001 (in millions of dollars)

Current Economic Contributionsof North Dakota

Child Care

6,020 jobs

$123 million in revenue

Direct EffectsChild-care centers take in revenue. Total

Contribution to State

EconomyIndirect Effects

Centers make purchases.

Induced Effects Centers pay workers

who purchase goods and services.

Ripple Effects of Child Care Spending

Economic ContributionsEconomic ContributionsOf Child Care in North DakotaOf Child Care in North Dakota

Every additional $1.00 spent on child Every additional $1.00 spent on child

care creates a total of care creates a total of $1.53$1.53 in in economic activityeconomic activity

Every 100 new child care jobs create an Every 100 new child care jobs create an

additional additional 3131 jobs in other industries jobs in other industries

Potential Economic ContributionsPotential Economic Contributions(given a 1% increase in child care

expenditures)

$1,230,000 in additional child care revenue

$651,900 in additional revenue for other industries

$405,900 in additional revenue from worker wage spending

Total: an additional $2,287,800$2,287,800

Policy Policy RecommendationsRecommendations

Two prioritiesTwo priorities

• Enhancing the quality of child care

• Increase access to affordable child care

North Dakota Kids Count

• Dr. Richard Rathge, Executive Director– North Dakota Kids Count, Fargo, ND NDSU,

IACC 424, Fargo, ND 58105– Richard.Rathge@ndsu.edu– Phone: (701) 231-8621– Fax: (701) 231-9730– URL: www.ndkidscount.org