Childcare issues costing SC’s economy $1 billion yearly

COLUMBIA, S.C. (WIS) – South Carolina’s economy is taking a nearly $1 billion hit each year because of families’ challenges in finding affordable childcare.

That’s according to a new report released Thursday and commissioned by the US Chamber of Commerce Foundation, in partnership with the South Carolina Chamber of Commerce and Department of Social Services.

It aims to shed light on the impact of what experts call a nationwide crisis.

According to the “Untapped Potential in South Carolina” report, about a quarter of South Carolina families with children under 6 say their jobs have been affected by childcare issues in just the last few months.

One in 10 of them has quit their jobs to take care of their kids full-time.

“Finding childcare was brutal,” Leah McCraney, a South Carolina mom, said. “I spent literal years — years, plural — on waitlists. I was forced to work part-time as a result of that wait period.”

It’s a difficult decision far too many families in South Carolina face: paying thousands of dollars for childcare every year, or having to miss work, cut their hours, or even leave the workforce if it is unavailable or unaffordable.

The report found businesses are bearing most of the brunt of the estimated $997 million economic hit, taking on about $818 million of it, but it also impacts state tax revenues by about $179 million.

“Childcare is a two-generation workforce issue: It’s critical for the workforce of today to be able to get to work and thrive, and it’s essential for the workforce of tomorrow to build the foundation they need to succeed,” Aaron Merchen with the US Chamber of Commerce Foundation said.

Some South Carolina employers that help their workers with childcare said it pays off in employee retention and productivity.

“Caregiving support isn’t a benefit; it’s a business strategy,” Nicole Scott, who works for Bank of America, said.

A bipartisan bill filed at the State House would incentivize more businesses to do that.

It would increase little-used tax credits available to South Carolina employers that create a childcare program for their employees, operate an employee childcare center, or cover their employees’ childcare costs at an outside center.

“What if employers started thinking in that aspect of providing their employees with some sort of stipend or program, or reimbursement structure to encourage them to offer childcare? Because, as we know, childcare is not just an economic issue,” Connelly-Anne Ragley with the Department of Social Services said.

That bill is still a ways away from reaching the governor’s desk.

But any legislation to address this challenge, along with any requests in the next state budget to put money toward it, can be taken up when lawmakers return to the State House in January.

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