Inadequate child care costs Hamilton County $94.4 million annually in lost earnings and revenue, according to a new study by Tennesseans for Quality Early Education.
Statewide, that economic loss amounts to $2.6 billion per year.
"There's no denying that we are facing a child care crisis here in Tennessee and across the country, and this report shines a light on just how dire the situation is for working families, businesses and our economy," Blair Taylor, president and CEO of Tennesseans for Quality Early Education, said in a news release. "Our current child care system needs an overhaul. It's our intent for this report to serve as a call to action for collaborative problem-solving by state government and the private sector."
The study analyzed survey results from 1,297 working parents with children younger than 6 to determine how child care challenges affect workforce participation and productivity.
It found that 40% of Hamilton County working parents of children younger than 6 reported employment disruptions due to inadequate child care.
(READ MORE: Reduced child care costs leave Hamilton County families 'thrilled')
More specifically, 21% quit or were fired, 25% turned down a job offer or promotion, 26% reduced hours from full time to part time or were prevented from increasing hours to full time, and 8% were forced to stop seeking employment altogether.
Researchers estimate Hamilton County parents lose $60.6 million in earnings each year because of that, and employers suffer losses of $18.6 million from lower productivity, reduced revenue and increased hiring and retention costs.
"High-quality child care, which enables adults to work while laying an important foundation for children's success in school and beyond, is a powerful strategy for growing Tennessee's workforce of today and tomorrow," Charles Wood, interim president and CEO of the Chattanooga Area Chamber of Commerce, said in a news release. "Many of the businesses understand the challenge for their employees of finding high-quality child care."
In Tennessee, the average annual price of center-based care is $11,068 and $10,184 for infants and toddlers respectively -- but wages aren't enough to cover those costs, according to the report.
Affording child care is a major issue for Hamilton County families, with 72% of parents citing affordability as a challenge, according to the study.
The state also is facing a child care worker shortage as it is among the lowest-paying jobs in Tennessee. The average annual pay for child care workers is $23,780 -- less than that of parking attendants, according to the report.
(READ MORE: Hamilton County Board of Education raises pay for school age child care workers)
That makes quality centers hard to find as 57% of survey respondents said finding suitable quality child care is an issue.
"The brain develops more in the first five years of life than during any other time, and about two-thirds of Tennessee children may spend a substantial portion of that consequential period of development in some form of child care," Taylor said. "Beyond the immediate economic implications, it's imperative we prioritize access to high-quality and affordable child care options in order to provide our children with the strongest foundation for future learning."
-- Compiled by Carmen Nesbitt