About the Industry
Obtaining affordable, quality child day care, especially for children under age 5, is a major concern for many parents. Child day care needs are met in different ways. Care in a child's home, care in an organized child care center, and care in a provider's home—known as family child care—are all common arrangements for preschool-aged children. Older children also may receive child day care services when they are not in school, generally through before- and after-school programs or private summer school programs. With the increasing number of households in which both parents work full time, this industry has been one of the fastest growing in the U.S. economy.
The industry consists of establishments that provide paid care for infants, toddlers, preschool children, or older children in before- and after-school programs. (For information on other social assistance services for children and youths, see the Career Guide statement on social assistance, except child day care.)
Two main types of child care make up the child day care services industry: center-based care and family child care. Formal child day care centers include preschools, child care centers, and Head Start centers. Family child care providers care for children in their home for a fee and are the majority of self-employed workers in this industry, which does not include occasional babysitters or persons who provide unpaid care in their homes for the children of relatives or friends.
The for-profit sector of this industry includes centers that operate independently or as part of a local or national chain. Nonprofit child day care organizations may provide services in religious institutions, YMCAs and other social and recreation centers, colleges, public schools, social service agencies, and worksites ranging from factories to office complexes. The number of for-profit establishments has grown rapidly in response to demand for child care services. Within the nonprofit sector, there has been strong growth in Head Start, the federally funded child care program designed to provide disadvantaged children with social, educational, and health services.
Recognizing that the unavailability of child care is a barrier to the employment of many parents, especially qualified women, and that the cost of the benefits is offset by increased employee morale and reduced absenteeism, some employers offer child care benefits to their employees. Some employers sponsor child care centers in or near the workplace, while others provide direct financial assistance, vouchers, or discounts for child care or after-school or sick-child care services. Still others offer a dependent-care option in a flexible benefits plan.