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Study: Early Care and Education Industry Strengthens Entire California Economy

More than 850,000 California children and their families are enrolled in early care and education programs in child care centers, preschools or family child care homes. The early care and education industry is not only important to children and their parents, it also strengthens the California economy as a whole. In a new report I co-authored with Jenifer MacGillvary, we discuss the range of economic benefits that the industry brings to California.

Every dollar spent on early care and education yields $2 in economic output for the California economy. Spending on child care services increases demand at child care suppliers and at the grocery stores, health care centers and other local businesses where child care workers spend their income. The industry also supports 200,000 jobs in California, including direct jobs caring for and educating children as well as jobs at those outlets where child care businesses and workers shop and purchase services.

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