Michigan Businesses Lose $2.8 Billion Each Year Due to Child Care Crisis

Michigan companies face steep yearly losses of $2.8 billion as workers quit or skip work when they can't find care for their kids. A new effort, the Investing in America Child Care Partnership, started up in June 2024 to fix this mounting crisis.

"If you don't have high quality facilities or centers, working parents are forced to make the decision, 'I'm not going to be able to work,'" said Celina Byrd, director of early childhood strategy for IFF according to Model D Media.

Most parents stuck at home want to work. Six out of ten say they'd take jobs if they found good care options. The math tells a stark story: single parents spend 40% of their pay just to watch their babies. Many simply can't pay these sky-high costs.

Some areas face worse shortages than others. Take Saginaw County - nearly four young kids fight for each open care slot. For the littlest ones, it's even worse. In the tightest areas, twenty babies might need the same seat.

This new team joins business chiefs with state officials and child advocates. Two big foundations - David and Lucile Packard plus Kresge - started this push.

The National Association of Counties picked six states to try new ideas. Wayne County, Michigan made the cut. They'll share what works at a big meet-up in 2026.

"There's no silver bullet. There's no one-size-fits-all-solution, but there is a solution to meet every need," said Jayme Powell, who runs the Detroit Regional Workforce Partnership.

"By investing in child care, you can put thousands and thousands of people back to work. Now you're talking about tax value, economic participation, people spending in their communities and supporting small businesses," Powell added.

Each year through 2030, Michigan expects over 100,000 jobs to sit empty. This team wants to write a plan that towns across the U.S. can use to get more parents working by fixing child care.