DFC Child Care Supply & Demand Survey Shows Shortages

Results of the Wisconsin Department of Children and Families (DCF), Child Care Supply and Demand Survey found almost 60 percent of providers across the state have unutilized capacity, such as closed classrooms, due primarily to staff shortages. Providers report that if they were able to operate at full capacity, they could serve up to 33,000 more children.

Wisconsin child care centers are only able to pay lead teachers an average of $13.55 per hour, which is less than half of the average hourly wage of $28.34 for Wisconsin workers. Current wages, combined with few or no benefits, are causing qualified early care and education professionals to leave the field. With a lack of staff, child care providers are stuck closing more classrooms and serving fewer children while watching their wait lists grow. Providers reported in the survey that a total of 48,000 children are on wait lists in Wisconsin.

Raising rates is difficult for child care providers as families are already struggling to pay the current prices. A report released from Forward Analytics highlighted that the average cost for newborn care in Wisconsin was between $10,400 and $13,572 annually in 2021. The report also shows that child care costs can consume up to 36 percent of a family’s household income for parents under the age of 25 at the median income and 18 percent for parents between 25 and 44 at the median income. For a typical family with parents under 25, child care costs can reach as high as 70 percent of the household’s income for two children in care. All told, the report highlights that the cost of child care for two young children in Wisconsin is now more than the average rent or mortgage and exceeds the annual cost of tuition to send two students to the University of Wisconsin-Madison. However, the price families pay doesn’t come close to the average true cost of $33,715 per year to care for an infant, which is what providers would need to pay their staff fairly and cover all expenses of running their business.