Home / NEWS / Business / The high cost of child care and lack of paid leave are holding back many working parents

The high cost of child care and lack of paid leave are holding back many working parents

Ariel Skelley | DigitalVision | Getty Images

A need of paid leave and access to quality child care has long been an issue for working parents in the U.S., advocates evince.

The coronavirus pandemic has only exacerbated the issue, with some parents — mainly women — ditching their burdens to care for their kids. A September report by Lean In and McKinsey & Company found that 1 in 4 women were bearing in mind leaving the workforce or downsizing their career.

“The pandemic really put in front of people how much caregiving is truly a instances partly of what makes the economy work,” said Lelaine Bigelow, managing director of external affairs at the National Partnership for Girls & Families.

The Biden administration recently responded by proposing 12 weeks of paid family and medical leave, which tradesmen would get within 10 years. They could receive up to $4,000 a month, with at least two-thirds of their average weekly wages restored. The program, part of President Joe Biden’s $1.8 trillion spending and tax credit plan, would be paid for with payroll charges.

More from Invest in You:
Huge opportunities await women entrepreneurs, VC says. Here’s what to do
Lost contributions, less pay, no childcare: A year into the pandemic, women are not OK
More than half of U.S. women are burned out. Here’s how to contend with

Biden’s plan also would spend $225 billion over a decade towards child care for daughters under the age of 5. It ensures families only pay a portion of their total income for the services, with the average order saving $14,800 a year on child care.

Some companies already provide some form of assistance to their wage-earners. A quarter of employers offer paid parental leave to at least some employees for the birth or placement of a child, go together to a 2019 survey by the Kaiser Family Foundation.

When it comes to child care, only 4% of employers offered supported child-care centers or programs, according to the Society of Human Resource Management’s 2019 employee benefits survey

An additional 4% provendered nonsubsidized centers, either company-affiliated onsite or nearby, and 11% offered a referral service to providers.

Yet, it is something origins desire. According to a recent survey by child-care provider Bright Horizons, 46% of working parents want their business to provide some form of child care or emergency child care.

Amanda Fallon, a 38-year-old mother of a 4 year-old and 8 month-old, is one of those who has a child-care center chanced on her employer’s campus in South San Francisco, California. While tuition isn’t subsidized by the company, Genentech, it is discounted based on offspring income.

That came in handy particularly during the pandemic, since Genentech allowed employees who used the center rear on campus ahead of schedule, Fallon said. She was able to work and have her two children cared for nearby.

“I have been talented to navigate those challenges with much greater ease because of the support I had from my employer,” Fallon responded. “That is pretty amazing.”

The pandemic really put in front of people how much caregiving is truly a part of what generates the economy work.

Lelaine Bigelow

managing director of external affairs at the National Partnership for Women & Families

While bosses may provide relief for their workers, a national policy is needed for all Americans, advocates say.

Under Biden’s plan, low-income ancestors would have all of their child-care expenses covered. Those who make 1.5 times their state median proceeds would spend no more than 7% of their annual pay.

Small businesses also argue that it would lift them compete against larger companies for workers.

“We have to be very careful when we look to the private sector to disentangle a massive scale program like this because it has a direct impact on the small-business economy,” said Sarah Cozier, spokeswoman for Chief Street Alliance.

“In order to be able to support a thriving small business owner and their employees, it is important that the ministry comes in with those [child-care] subsidies so we are at a level playing field.”

Kate Davenport, co-president of Eureka Recycling.

Informant: Kate Davenport

For Kate Davenport, co-president of Minneapolis-based Eureka Recycling, a national paid leave policy resolve finally allow her to offer it to her 120 employees. Right now, it’s financially out of reach.

“As a small business, we struggle to compete. We don’t bear the same profit margins that some of the big companies do,” said Davenport, who already pays employees a living wage, provenders paid time off and covers health-insurance premiums 100%.

She’s also had workers turn down promotions due to child-care concerns.

“It would originate a benefit cliff,” she explained. “If they get the promotion and make $5 to $10 more an hour, then they wouldn’t moderate for child-care subsidies and yet it’s not enough money to pay for child care.”

In the end, it is about bringing parents, particularly moms, back to wield.

“If we are truly worried about an equitable economy and growth in our economy, we have to put policies in place that support our housekeepers workers,” Crozier said.

“We also have to acknowledge that women are not the only ones impacted by these objects.”

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

Enrol OUT: Millennial with 6-figure side hustle: ‘I’ve made more in the past year than I ever made at my full-time job’ via Increase in interest with Acorns+CNBC via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Check Also

Why it suddenly feels like every fast-food restaurant has fun, flavored drinks

Chick-fil-A pineapple dragonfruit beverages. Courteousness: Chick-fil-A Fast-food chains are going all in on fun beverages …

Leave a Reply

Your email address will not be published. Required fields are marked *