As small business owners across Pennsylvania face ongoing workforce challenges, the childcare crisis continues to reveal itself as a key barrier to hiring, retention, and productivity. A recent Wall Street Journal article (paywalled) highlights how nationwide families spend an average of 22 percent of their income on childcare, with some paying more than their mortgage. Meanwhile, childcare providers are struggling to addres staffing shortages, rising insurance costs, and regulatory burdens—issues that mirror the pressures small businesses face every day.
The PA Chamber is stepping up. Childcare is a workforce imperative, and our member-centric policy agenda is designed to deliver real economic benefits to employers, providers, and workers across the Commonwealth.
How Our Policy Agenda Supports Small Businesses
Together with business leaders and local chambers, we’ve developed a robust childcare policy agenda that aims to stabilize the childcare sector and unlock workforce participation, helping small businesses attract and retain talent. Key reforms include:
- Support Staffing Efforts
Opening pathways for retired educators and future teachers to enter the childcare workforce, easing hiring challenges for providers and expanding access for working parents.
- Reduce Administrative Burdens
Streamlining licensing and permitting processes to reduce red tape and improve regulatory clarity—making it easier for providers to operate and grow.
- Combat Rising Insurance Costs
Advocating for legal reforms to curb excessive litigation and venue shopping, which drive up liability insurance costs for childcare providers and small businesses.
The Cost of Inaction: Billions Lost
In recent testimony before the House Republican Policy Committee, PA Chamber Government Affairs Manager Aaron Riggleman shared eye-opening data: Pennsylvania loses $3.47 billion annually due to childcare-related disruptions—including $2.88 billion in lost productivity and $591 million in forgone tax revenue.
That’s not just a family issue—it’s a business issue – and we stand to lose billions more by failing to implement these commonsense reforms.
The PA Chamber Foundation’s Keystone Initiative—our long-term economic blueprint for making Pennsylvania more competitive—lists childcare reform among its top priorities. By addressing this crisis, we can strengthen the workforce, support small businesses, and boost economic growth.
What You Can Do
We encourage small business leaders to:
- Share your experiences with childcare-related workforce challenges.
- Engage with your local chamber and elected officials to support reform.
- Explore partnerships with childcare providers or employer-sponsored care models.
Together, we can build a stronger, more resilient workforce—and a more competitive Pennsylvania.