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Early Child Care Good for Economy

1/14/08 - Early Care and Education Industry Generates More Than $1.9 Billion Annually for Los Angeles County Economy, According to Impact Study Released Today

Panel of Business, Political and Preschool Leaders, Including Economist Jack Kyser and County Supervisors Don Knabe and Yvonne B. Burke, Stress Importance of Local Child Care And Education Industry That Employs More Than 65,000 People in the County

LOS ANGELES--(BUSINESS WIRE)--Los Angeles County's Early Care and Education industry directly employs more than 65,000 people and generates more than $1.9 billion annually for the local economy, according to a study released Jan. 14 by the Los Angeles County Child Care Planning Committee, the City of Los Angeles Workforce Investment Board, and Los Angeles Universal Preschool.

The results of the study were presented by a panel of experts during a press conference held at the California Endowment in Los Angeles. Those addressing the study's results included Jack Kyser, chief economist with the Los Angeles County Economic Development Corp.; County Supervisors Don Knabe and Yvonne B. Burke; and Gary Mangiofico, CEO, Los Angeles Universal Preschool; and Alicia Lara, vice president, Community Investment, United Way of Greater Los Angeles.

"The (Early Care and Education) industry is a significant part of Los Angeles County's economic infrastructure," said Burke, who also chairs the county's Children's Planning Council. "These small businesses not only educate and care for our children, but lay the groundwork for the County's future economic success by preparing the next generation for constructive participation in the economy which will help in attracting business to the area."

The study was conducted by the Insight Center for Community Economic Development. Researchers from the Insight Center assessed the direct and indirect impact the Early Care and Education industry has had on the county's economy. The study examined licensed and regulated care countywide.

"This study strengthens our belief in the important role that early childhood education plays in helping to better prepare our children for school and life," Mangiofico said. "It also sheds light on the overall significant impact the industry has on the L.A. County economy."

In Los Angeles County, an estimated 15 percent of the workforce have children ages 0 through 13 who live in households where both parents work. While population numbers appear to be stable, more families are entering the workforce, which is a major reason why the demand for child care and preschools continues to grow.

Key points of the study include:

• About 65,000 people are employed in the county by the Early Care and Education industry.
• $1.9 billion is generated locally annually.
• The Early Care and Education industry benefits all industries in the county by enabling parents to work and attend job training/education programs to upgrade skills.
• The Early Care and Education industry supports the employment of thousands of families whose earnings are estimated at more than $22 billion.
• The industry is projected to generate the sixth highest number of new jobs between 2006 and 2016 of all industries in Los Angeles County.

The study offered the following recommendations targeting businesses, government, and the Early Care and Education industry:

• Enhancing the affordability and accessibility of quality Early Care and Education (ECE) so that children can receive the full benefit of a quality early education experience and so that working families can obtain and maintain employment.
• Developing an ECE industry-wide workforce development agenda to ensure a well qualified workforce for an expanding ECE sector.
• Encouraging regional and local planning entities, including cities and Community Redevelopment Agencies, to incorporate ECE issues into their agendas.
• Ensure that there's specific language that encourages and facilitates the development of ECE services in the general plans of the county and of each city within it.

The cost of the study was $210,000 and was funded by a collaboration of Los Angeles Universal Preschool, the Los Angeles County Child Care Planning Committee, and the City of Los Angeles Workforce Investment Board.

Article reprinted with permission. Source: Los Angeles Universal Preschool; BusinessWire.

Founded in 1992, CCLC is a national child care provider dedicated to developing unique and effective employer-sponsored child care programs. CCLC currently operates 104 employer-sponsored child development centers. We offer high-quality child care programs for children ages six weeks through on-site or near-site child development center, before and after school programs, summer camps and specialized dependent care programs such as priority access and back up child care. We have extensive experience providing quality, convenient and affordable child care programs for working families, creating professional work environments for early childhood educators and helping our client realize their goals for recruitment, retention and work-life benefits. For more information about CCLC, visit our website at www.cclc.com or call
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