Communities & Businesses > The Economic Impact of Child Care

There is a growing recognition of how child care is linked to the economic viability of a community. Child care has become one of the major resources supporting the family of the 21st Century. Regulated child care fills an important need for both families and the economy. An interest in creating a high-quality, yet affordable child care system is directly linked to economic and social benefits for the state. When the state's child care demands are met, parents can work, employers can fill jobs, the tax base can grow, and children's needs for nurturance, supervision, socialization and intellectual stimulation are met. It is essential that families be able to access and afford high-quality care for their children.

Child care plays a major role in New Jersey's economy. The child care and early education industry:

The 2019 study by the Committee for Economic Development, Child Care in State Economies: 2019 Update provides an in-depth look at how the industry drives economics.

Although the U.S. Department of Health and Human Services recommends that parents spend no more than 7% of their family income on child care - New Jersey families often spend more of their income on child care than they do on other expenses, including housing. A 2018 study released by Child Care Aware of America on the cost of child care throughout the United States, shows the annual cost of child care in New Jersey:

ANNUAL COST OF NEW JERSEY CHILD CARE

ANNUAL COST OF CHILDCARE

Click here for the full report on The U.S. and the High Cost of Child Care: 2018 update appendix tables, which show the cost of child care in New Jersey in centers and family child care homes.