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Childcare Costs

Childcare costs have significantly increased

Childcare costs as reported by providers have significantly increased from 2019 to 2021. The cost of childcare is often a significant proportion of working parents’ income, and in some cases may be a barrier to participation in the workforce.³ In 2021, even the cheapest childcare option was more expensive than resident tuition and fees at the University of Nebraska–Lincoln. The annual cost of care for an infant in a childcare center is nearly twice as expensive as resident tuition and fees. Despite the increase in cost, childcare workers have low wages. In 2021, the annual median income of a childcare worker in Lincoln was $22,980.⁴

• In 2021, average annual childcare costs in Lancaster County ranged from $10,375 to $19,224 depending on the age of the child and whether care was provided in a Center or Family Child Care Home.
• The overall average annual cost of childcare in 2019 was $7,519 compared to $14,098 in 2021. This is an 87% increase in childcare costs over two years.

Footnotes

3. Taryn W. Morrissey (2017). Child care and parent labor force participation: a review of the research literature, Review of Economics of the Household, 15(1), 1-24. https://ideas.repec.org/a/kap/reveho/v15y2017i1d10.1007_s11150-016-9331-3.html

4. U. S. Bureau of Labor Statistics (2021, May). Occupational employment and wage statistics query system (Lincoln, NE; SOC: 299011). [Data set]. https://data.bls.gov/oes/#/geoOcc/Multiple%20occupations%20for%20one%20geographical%20area