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Washington’s child care shortage costs families $5 billion in lost earnings, study finds

A ReadyNation analysis estimates that limited access to affordable child care cost Washington parents $5 billion in earnings in 2025 and businesses another $1.3 billion. King County accounts for about 60% of both losses, while rural families face long waits and few nearby options.

Washington’s child care shortage costs families $5 billion in lost earnings, study finds

Washington families lost an estimated $5 billion in earnings in 2025 because they could not find affordable, accessible child care, while businesses lost another $1.3 billion through reduced productivity and staffing, according to a ReadyNation study released in April.

Researchers based the estimates on a March survey of 600 Washington parents with children age 5 or younger. The study projects a total annual economic loss of $6.3 billion for the state.

King County bears a disproportionate share: its parents account for about 60% of statewide parent earnings losses, and businesses there account for nearly 60% of business losses. Parents in the county lose an average of $14,300 a year, compared with a statewide average of $9,740, said Kristin Wiggins, a ReadyNation project lead. Child care-related work disruptions cost King County businesses an average of $3,660 annually, versus $2,490 statewide.

The costs come as Washington families pay an average of $21,000 a year for licensed child care, according to the state Department of Children, Youth and Families. Some parents wait months or more than a year for a spot, and options can be especially scarce in rural communities.

In Metaline, near the Canadian and Idaho borders, Elizabeth Terrill left her job after becoming a parent because there was no practical child care nearby. A licensed center would have required a three-hour round trip from home before she could make the drive to work, she said.

Terrill and her husband moved to Pend Oreille County in 2019 for his apprenticeship at Boundary Dam. She had also found work, but after their first child was born, the commute needed to reach child care made holding her job unworkable. She returned briefly after three months of family leave in 2023, then left the workforce. The couple now has two children, ages 4 and 2.

“Nearly everyone that I know of has had to step away from their jobs,” Terrill said of families in the area. She said she valued time with her children but sometimes felt that her teaching certificate and history degree had been sidelined.

The losses can extend beyond immediate wages. Parents who leave work may also miss promotions, raises and retirement savings. Terrill said her family can manage on her husband’s income, but she worries about whether they will have enough for retirement and future expenses.

ReadyNation’s study also found that Washington child care providers earn an average of $18 an hour. That compares with a statewide average hourly wage of $37.28 in 2024, according to the state Employment Security Department. Low pay, along with rising costs for rent and operating space, can make it harder for providers to retain staff and expand care, Wiggins said.

Wiggins said the economic effects ripple beyond families and employers. Children who receive high-quality early care are more likely to be prepared for school and later earn higher incomes, she said, while early experiences can also affect future demand for public services.

The latest figures point to a steep rise in parents’ losses: a similar study two years earlier put the average at $2,458 per parent annually, compared with $9,740 in the new analysis. Survey respondents included 56% mothers and 44% fathers, and the findings showed child care challenges affecting parents of different genders at similar rates.

Terrill said expanded paid parental leave could ease the strain on families, alongside child care options connected to workplaces. For now, she said, families in her area have no local child care to choose from: “It’s that I don’t have anything.”

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