A new report details how strengthening Arizona’s child care system could generate over $12 billion in annual economic output and support over 100,000 jobs.
Unlocking Potential: Turn Arizona’s Priorities into Economic Gains is a new analysis conducted by Rounds Consulting Group for the Center for the Future of Arizona, a nonpartisan think tank.
It looks at child care, along with four other essential economic priorities: dual enrollment for high school students, post-secondary attainment, housing affordability and transportation investment.
“Accessing affordable, quality child care is a kitchen table issue for families,” said Joe Barba, First Things First senior director of government affairs. “But more importantly, it is vital for a robust workforce and the overall economic growth of Arizona.”
The center’s 2024 Arizona Voters’ Agenda highlighted a survey that showed that 77% of all voters believe Arizona should invest more in child care. Through nonpartisan survey research of Republican, Democratic and independent/unaffiliated voters of all ages, the Voters’ Agenda identifies what likely voters agree on and prioritize.
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Majority of Arizona voters believe state should invest more in child care, according to survey
Survey says that 77% of Arizona voters believe the state should invest more in child care assistance programs for qualifying families.
The center’s recent analysis “demonstrates that targeted investments in these areas yield substantial returns: higher earnings for families, stronger labor force participation, more competitive businesses, and increased public revenues. In contrast, failing to act risks undermining Arizona’s growth potential, widening opportunity gaps and leaving billions in economic value unrealized.”
When families have limited child care options, it creates challenges not only for the family, but also Arizona’s workforce, businesses and public sector through a variety of ways including:
- Reduced workforce participation.
- Barriers for parents to pursue further education and skill development.
- Long-term earning penalties for women because they are more likely than men to leave the workforce to manage child care responsibilities.
- Reduced worker productivity and worker turnover.
On the flip side, Arizona stands to gain $12.4 billion in total economic output across all sectors through increased workforce participation, expanded opportunities for parental education, increased business competitiveness and workforce retention, unlocked discretionary income for Arizona families and job creation and growth.
The section on child care concludes that Arizona voters are aligned in calling for solutions.
“Across age and party lines, they want leaders to prioritize investments that help working parents/guardians and strengthen the state’s economy. That level of consensus is powerful. Expanding access to affordable child care is an economic necessity. When childcare is accessible, families gain stability, parents/guardians can fully participate in the workforce and businesses benefit from more reliable, productive labor. Improving affordability unlocks billions in household spending power, supports job creation, and generates tax revenues that strengthen Arizona’s future,” the analysis states.
