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Childcare Services

Nature of the Industry  |  Working Conditions  |  Employment  |  Occupations in the Industry
Training and Advancement  |  Job Outlook  |  Earnings

Significant Points

• Preschool teachers, teacher assistants, and childcare workers account for about 3 out of 4 wage and salary jobs.
• Training requirements for most jobs are minimal.
• Job openings should be numerous due mostly to high turnover—reflecting few benefits, low pay, and occasionally stressful working conditions.

Nature of the Industry

Obtaining affordable, quality childcare, especially for children under age 5, is a major concern for many parents. Childcare needs are met in many different ways. Care in a child’s home, care in an organized childcare facility, or care in a provider’s home are all common arrangements for preschool-age children. Older children may receive childcare services when they are not in school, generally through before- and after-school programs. With the increasing number of women in the workforce, the provision of childcare services has been one of the most talked about and fastest growing industries in the U.S. economy. 

This industry consists of establishments that provide paid care for infants, prekindergarten or preschool children, or older children in after-school programs. Formal childcare centers include nursery schools, preschool centers, Head Start centers, and group daycare centers. Self-employed workers in this industry often provide care from their home for a fee. Private household workers in this industry provide care for children in the child's home. This industry does not include occasional babysitters or persons who provide unpaid care in their homes for the children of relatives or friends. (Social Services, Except Childcare is covered in a separate Career Guide statement.) 

The for-profit sector of this industry includes centers that operate independently or are part of a local or national chain, whereas nonprofit childcare organizations include religious institutions, YMCA’s, colleges, employers, public schools, social service agencies, and State and Federal Government agencies. For-profit establishments have grown rapidly in response to demand for childcare services. Within the nonprofit sector, there has been strong growth in Head Start, the federally funded childcare program designed to provide disadvantaged children with social, educational, and health services. 

Childcare shifted in the past from unpaid to paid caregivers, particularly childcare centers. Center-based care has increased, substituting for unpaid care by relatives, as fewer families have access to relatives who were willing or able to keep their children. 

Some employers offer childcare benefits to employees. They recognize that the lack of childcare benefits is a barrier to the employment of qualified women, and that the cost of the childcare is offset by increased employee morale and reduced absenteeism. Some employers sponsor childcare centers in or near the workplace; others offer direct financial assistance, vouchers, or discounts for childcare, after-school or sick childcare services, or a dependent care option in a flexible benefits plan. 

Working Conditions

Watching children grow, learn, and gain new skills can be very rewarding. Preschool teachers and childcare workers often improve their own communication, learning, and other personal skills by working with children. The work is never routine; new activities and challenges mark each day. However, childcare can be physically and emotionally taxing, as workers constantly stand, walk, bend, stoop, and lift to attend to each child’s interests and problems. They must be constantly alert, anticipate and prevent trouble, deal effectively with disruptive children, and provide fair but firm discipline. Nonetheless, this is a relatively safe industry; in 1999, childcare services had an injury and illness rate of 2.6 per 100 full-time workers, compared with a rate of 6.3 throughout private industry. 

The hours of childcare workers vary. Many centers are open 12 or more hours a day and cannot close until all the children are picked up by their parents or guardians. Unscheduled overtime, traffic jams, and other types of emergencies can cause parents or guardians to be late. Nearly half of the full-time employees in the childcare services industry work more than 40 hours per week. Self-employed workers tend to work longer hours than do their salaried counterparts. The industry also offers many opportunities for part-time work—around 40 percent of all employees work part time. 

Many childcare workers are faced with stressful conditions, low pay, and few benefits. Turnover among childcare workers is high. 

Employment

Training & Advancement

Most States do not impose training requirements for family childcare providers. However, many local governments offer training and require family childcare providers to obtain licenses. Home safety inspections and criminal background checks are usually required of an applicant. In the case of childcare centers, however, staffing requirements are imposed primarily by the States and by insurers. Although requirements vary, in most cases a minimum age of 18 is required for teachers, and directors or officers must be at least 21. In some States, assistants may work at age 16, and in several States, at 14. 

Most States have established minimum educational or training requirements. Training requirements are most stringent for directors, less so for teachers, and minimal for childcare workers and teacher assistants. In many centers, directors must have a college degree, often with experience in childcare and specific training in early childhood development. Teachers must have a high school diploma and, in many cases, a combination of college education and experience. Assistants and childcare workers usually need a high school diploma, but it is not always a requirement. Some employers prefer to hire workers who have received credentials from a nationally recognized childcare organization, including the Council for Professional Recognition. 

Many States also mandate other types of training for staff members, such as health and first aid, fire safety, and child abuse detection and prevention. In nearly all States, licensing regulations require criminal record checks for all childcare staff. This screening requirement protects children from abuse and reduces liability risks, making insurance more available and affordable. 

State governments also have established requirements for other childcare center personnel involved in food preparation, transportation of children, provision of medical services, and other services. Most States have defined minimum staff-to-children ratios. These vary depending on the State and the age of the children involved. 

Job Outlook

Wage and salary jobs in the childcare services industry are projected to grow 42 percent over the 2000-10 period, compared with the 15 percent employment growth projected for all industries combined. An unusually large number of job openings will also result each year from the need to replace experienced workers who leave this industry. Turnover is very high, reflecting the low wages and relatively meager benefits. Faster than average employment growth, when coupled with high turnover should create numerous employment opportunities. 

The rising demand for childcare services reflects demographic trends. Over the 1988-98 period, the population of women of childbearing age (widely considered to be ages 15 to 44) increased by almost 2 million, accompanied by a rise in their labor force participation. As a result, the number of women in the labor force with children young enough to require childcare increased very rapidly. These demographic changes are projected to slow over the 2000-10 period, so projected employment growth in the childcare services industry will slow down accordingly. Although the number of women of childbearing age is expected to grow very slowly, the number of children under age 5 still will increase during this period. 

The demand for childcare services will remain high. As the labor force participation of women between the ages of 16 and 44 increases, more parents of preschool and school-age children will seek suitable daycare arrangements. As more parents work during weekends, evenings, and late nights, the demand will increase significantly for childcare programs that can provide care during nontraditional hours. School-age children, who generally require childcare only before and after school, increasingly are being cared for in centers. 

Center-based care should continue to expand its share of the industry as government increases its involvement in promoting and funding childcare services. Increased funding for Head Start and other national childcare programs would result in more children being served in centers. Demand for preschool teachers could increase if many States implement mandatory preschool for 4-year-old children. Another factor that could result in more children being cared for in centers is the greater involvement of employers in funding and operating daycare centers. Welfare reform legislation requiring more welfare recipients to work also could contribute to demand for childcare services. 

Earnings

Only about 3.5 percent of all workers in childcare services are union members or are covered by union contracts, compared with 15 percent of workers in all industries.

Source: Career Guide to Industries, Bureau of Labor Statistics

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