The Impact of the Child Care Cliff is Real, as Parents Spend More and Wait Longer For Spots

Rebekah Parr, 29, has gone through six nanny changes in five years for her three children, ages 1, 3, and 5. The most recent one resigned late last year, and Parr has yet to find a replacement. Parr works full-time and runs the blog Two Mama Bears. Between folding laundry (on conference calls) and caring for her young children, Parr continues searching for child care.

“Mentally, this has been incredibly stressful,” Parr says. “I’m in this limbo right now of needing a full-time caregiver but trying to get by with part-time help, as it’s all I have been able to find since our prior nanny resigned. I try to stay positive and multitask so that I can get as much done as possible with the time I have, but I always feel like someone or something is getting the short end of the stick.

Parr isn’t alone. Though she hasn’t added her children’s names to any waitlists, discouraged by the time and hoping instead to find a nanny for personal reasons, other parents have.

New data based on responses from 2,000 parents in Care.com’s 2024 Cost of Care report found 65% of respondents spent time on a daycare waitlist. Of those parents, most (81%) were on multiple waitlists at once. Sometimes, they don’t make it off the list because the center closes—62% of parents have experienced that frustrating reality since September. That month, federal funding from the 2021 American Rescue Act was halted, sparking what’s called a “child care cliff.” (Disclosure: Care.com is a division of IAC, as is Parents.)

“With the federal relief that daycares relied on now missing, combined with facing higher operating expenses from inflated prices for goods and increased demand for higher staff wages, margins may run too thin to remain open,” says Sean Lacey, the general manager of child care for Care.com. “If they do, parents may find that the added financial squeeze on daycares means weekly tuition increases.”

Families spent an average of 24% of their household income on child care in 2023, with nearly half (47%) forking over $18,000. Many (35%) were using savings on child care. There’s also a cost to sitting on waitlists. According to Care.com’s report, 59% of parents spent an extra $200 on care while waiting to get their child into a daycare center.

All in all, parents like Parr are stuck in a logistical nightmare.

“As the cliff approached, many were wondering what impact it’d have on parents of young children if any at all,” Lacey says. “What this data tells us is that the fallout has arrived, with child care prices escalating, availability diminishing, and waitlists lengthening.”

How Parents Are Coping Logistically 

Parents are using what Care.com terms a “patchwork quilt of care” to fill in the gaps while they search for care (or wait for it to become available in the first place). According to the report, these measures include:

• Afterschool program: 34% (up from 13% in 2022)
• Babysitter: 37% (up from 19% in 2022)
• Child care swap/co-op: 23% (up from 7% in 2022)
• Afterschool sitter: 26% (up from 11% in 2022)
• Daycare in someone’s home: 23% (up from 9% in 2022)
• Nanny share: 22% (up from 13% in 2022)
• Daycare: 39% (up from 30% in 2022)

Parr has a part-time babysitter...and herself. Her husband works outside the home.

“I’m consistently behind in my work and daily tasks. I’m finding myself pulling out my laptop at night after the kids have gone to bed to get a few things done,” Parr says. “My employer has been extremely understanding—thankfully—but not all moms are that fortunate.” 

The Mental Toll of the Child Care Cliff

The Care.com report does not delve into the mental health impacts child care issues have had on parents. However, the report found that child care was one of the top three financial stressors in parents’ lives.

“This means parents are reaching their breaking point amid the financial pressure to pay for care for their children, and to make matters even more stressful, parents are dealing with this financial burden well before their child turns five years old,” Lacey says.

Parr essentially echoed his sentiments.

“Losing our nanny felt like the straw that broke the camel’s back,” Parr says.

Parr says she generally is the one in her family searching for child care because she works from home and “likely also because I’m a mother.”

Yet, a recent study from Parents and Verywell Mind on dads and mental health shows fathers are not immune. The data found two out of three dads had felt at least “moderately stressed” in the last 30 days. Of those respondents, 43% pointed to child care as a reason for at least half of their stress. 

“The stresses that parents are under in America right now are at an extreme level,” says Sarah Baroud, MSW, LICSW, a therapist with a focus on perinatal mental health and the founder of Practice Makes Present LLC. “The cost of living plus the lack of quality affordable child care and the lack of proper leave for new parents is a dangerous combination.”

What can parents do?

How to Cope With Child Care Challenges Amid the Cliff Fallout

It’s frustrating to have such an important matter in the hands of lawmakers, who have yet to pass a solution to the child care cliff despite calls for one from the Biden Administration in 2023. Parents need logistical solutions now. Experts share some insights.

Adjust expectations

A mother of two, Baroud’s children entered daycare when they were three months old. She empathizes with the desire for parents to find a center that meets their standards for “best.” But she suggests keeping the most important things in mind, especially right now.

“I have seen what the most important factors are, for us anyway. It's not the wooden toys or the sleekest playground,” Baroud says. “It's not the apps and technology to keep parents in the loop each moment. What should be of the utmost concern is the interest of the staff in caring for your children.”

That doesn’t mean you can’t or shouldn’t want these things for your child, but Baroud wants parents to lose the guilt over it.

“When your baby or child has a good, safe bond with the staff members, they will grow, learn, make mistakes, eat, play, and sleep just as well as is right for them,” Baroud says.

Reach out for help

Not having a village can feel incredibly lonely. But if Care.com’s data is any indication, you’re not alone. Raise the flag and ask for help. You might be surprised who answers.

“Reaching out to their circle of parents, neighbors, family, and social network can help parents find a community or allow them to connect with parents in similar situations to work together on a shared form of child care, like a nanny share or parent co-op,” Lacey says.

Employers may also have benefits.

“It’s also a good idea for parents to check to see if they can lean on any benefits from their employer that could help find child care, whether that be membership to an online caregiving platform, access to emergency backup care, or resources for connecting with local daycares,” Lacey says.

Demand better

We’re in a presidential election year, and Lacey encourages parents to use their voices and votes as leverage.

“Parents can, should, and will use their vote when it comes to a candidate’s view on child care policy,” Lacey says. “Another way parents can reach elected officials is by contacting state and local legislators to voice their concerns, share their experiences, and outline their expectations for change.”

Care.com's report shows 59% of parents say child care access and affordability is a top priority that could impact how they will vote in 2024. Further, 88% say a candidate's position on child care policy will sway how they vote. A majority of parents also want these issues discussed during the Presidential debates.

On a more local level, advocate for more from your employers. It might feel awkward, but Lacey suggests viewing the conversation as a help-me-help-you situation (because it is one).

“Access to care directly affects their ability to work,” Lacey says. “If parents don’t have access to child care benefits, they should consider using every mechanism to advocate for support by having open conversations with their manager, requesting the benefits directly with their human resources department, and mentioning care benefits in any company-led surveys.”

Parr didn’t get into the politics of it all. But it’s certainly personal for her.

“Child care is essential for working parents, and in this economy and with this job market, we’re not finding the help we need,” Parr says.