Child Care Industry in New York State

The childcare industry in New York State is vital for supporting families and the economy, yet it faces persistent challenges with affordability, workforce shortages, and access gaps. This snapshot explores the current landscape, key issues, and the outlook shaped by recent state investments and policy changes.

Industry Overview

The childcare industry in New York State provides essential support for families and the economy, serving a significant number of households with children under age five. There are over 14,000 licensed childcare providers, including both centers and family-based care. However, the sector is heavily impacted by cost and access challenges, particularly for infants and toddlers. The estimated annual cost for center-based infant care averages around $19,584, which can consume a significant portion of household income, particularly for single-parent families.

• Most childcare centers are small, independent operations – 79% have a single location and 78% employ fewer than 20 workers.
• Pre-school-age children of working parents average 36 hours of care from childcare providers per week.

Industry Outlook

The outlook for New York’s childcare sector is shaped by recent policy changes, including a multi-billion-dollar investment from the state’s 2024-25 budget. This funding aims to expand access, support workforce development, and stabilize the industry. Despite these efforts, high operating costs, workforce shortages, and affordability challenges continue to press on the sector. Capacity has increased modestly statewide but has declined in some rural and upstate areas, leaving gaps in childcare availability. Experts advocate for sustained public investment to ensure equitable access to quality care.

Major Issues

• Affordability and Accessibility: Childcare costs are high, and a gap exists between available slots and demand, particularly in rural and underserved communities. Many families forgo employment opportunities due to childcare costs and limited availability.
• Workforce Compensation and Retention: Childcare workers in New York earn significantly below the state’s median wage, with an annual average of $32,900. This low pay, combined with high turnover and staff shortages, limits the sector’s ability to meet demand. A proposed workforce compensation fund aims to improve wages, helping to retain workers and attract new talent.
• Equity and Access: Families in low-income and rural areas face additional challenges accessing affordable care. Persistent gaps in care availability across regions impact labor force participation, particularly for women.

Key Associations

• New York State Office of Children and Family Services (OCFS): Oversees licensing and funding programs, including the Child Care Assistance Program (CCAP) that helps low-income families afford care.
• New York State Association for the Education of Young Children (NYSAEYC): Provides professional development and advocacy for early childhood educators.
• Cornell ILR School’s Buffalo Co-Lab: Researches the childcare industry, advocating for equitable policies and the development of a robust childcare workforce.

Trade Journals and Publications

• Child Care Exchange: Offers insights and updates on the childcare sector nationwide, including operational and workforce trends.
• Young Children (NAEYC): Published by the National Association for the Education of Young Children, covering educational strategies, policy, and best practices.
• Cornell ILR School Reports: Publications such as “The Status of Child Care in New York State” provide data and policy recommendations specifically for New York.
• Child Care Aware of America National and state statistics.

• Administration for Children & Families  News, trends, and statistics from US Department of Health and Human Services.

• National Institute for Early Education Research Preschool news, trends, statistics.

• ChildTrends Databank News, trends, and statistics on young children.

NYSBDC Business Advisors can help you make sense of the childcare landscape in NYS and in your community. Keeping abreast of industry trends is important to understand the issues consumers and providers are facing.