ECEA Releases an Economic Recovery Plan for the State

Quality Childcare is Key to New Jersey’s Economic Recovery

Introduction:

The COVID-19 Pandemic has hit New Jersey particularly hard through the loss of life, jobs, and businesses. As the state rebuilds its economy into the summer, the childcare industry will play a significant rolein allowing our workforce to return to work. 

The Ask:

The private DCF-licensed child-care industry is essential for parents to return to work, providing high-quality early childhood education, serving families of every economic spectrum, and playing a significant role in rebuilding New Jersey’s economy.

Our state lawmakers must provide guidelines and open community based New Jersey licensed childcare immediately so employees and those seeking jobs have childcare and education for their children.  There also needs to be adequate time given to ramp up these centers after they have been closed for weeks.

The Situation:

• 20% of New Jersey’s working population have filed for unemployment;
• New Jersey public schools will remain closed for the current school year, leaving parents who are trying to return to work with no place for their school-age children to go;
• New Jersey is beginning to reopen the economy;
• Parents need quality childcare to return to work;
• New Jersey’s private childcare industry is specifically designed to serve parents and the care and education of young children and elementary school-age children; and
• The New Jersey Department of Children and Families (NJDCF) highly regulates the health and safety of the private childcare industry.
• Most of the 4,165 New Jersey childcare centers have been closed since April 1, 2020. Only 500 of the centers statewide are currently open to serve essential workers.

New Jersey Child Care Economics:

• New Jersey’s childcare centers employ more than 87,000 individuals (almost entirely women) who care for and educate an estimated 400,000 children statewide.
• New Jersey’s licensed childcare centers generally operate 245 days per year with drop-off times as early as 6:30 am with pick-up as late as 7 pm (11.5 to 12.5 hours per day) to accommodate parents’ work schedules.
• New Jersey’s childcare industry is a $3 billion economic engine that generates more than $250,000,000 in taxes each year to the State.
• To qualify for a NJDCF license, childcare providers must adhere to the highest safety, health care and environmental standards in the United States.
• The childcare industry is in a very fragile state resulting from this pandemic.
• Without a reliable network of qualified licensed childcare centers, working parents cannot return to work.
• Without a strong workforce the economy cannot rebound after a crisis.
• If the industry fails, childcare deserts will develop throughout New Jersey. Former childcare employees will become a drain on the State through increased unemployment and potential welfare support.
• A significant portion of the 4,100+ private sector childcare businesses will close, eliminating secure jobs and more than $250,000,000 in taxes to municipalities and State coffers.

Conclusion:

The central point: Supporting the essential licensed childcare industry is more important now than ever. State lawmakers must ensure a viable childcare industry to serve families desperate to return to work.

This paper was developed by the Early Childhood Education Advocates (ECEA) and the New Jersey Child Care Association (NJCCA). Questions can be directed to ECEA President Guy Falzarano at 732-261-0507 or This email address is being protected from spambots. You need JavaScript enabled to view it.