Industry Outlook
Wage and salary jobs in the child day care services industry are projected to grow 38 percent over the 2004–14 period, compared with the 14 percent employment growth projected for all industries combined. An unusually large number of job openings also will result each year from the need to replace experienced workers who leave the industry. Replacement needs are substantial, reflecting the low wages and relatively meager benefits provided to most workers. Coupled with the substantial replacement needs, faster-than-average employment growth should create numerous employment opportunities.
The rising demand for child day care services reflects in part demographic trends. Over the 2004–14 period, the number of children under age 5 is expected to increase at a faster rate than in previous years. In addition, the labor force participation rate of women of childbearing age also is expected to increase, though only slightly. This increase likely will cause more households to have both parents working full time, increasing the demand for some form of child care arrangement. As parents continue to work during weekends, evenings, and late nights, demand for child care programs that can provide care during nontraditional hours will grow significantly. School-aged children, who generally require child care only before and after school, increasingly are being cared for in centers.
With an increasing number of parents preferring its more formal setting and believing that it provides a better foundation for children before they begin traditional schooling, center-based care should continue to expand its share of the industry. However, family child care providers will continue to remain an important source of care for many young children, because some parents prefer the more personal attention that such a setting provides. Demand for child care centers and preschool teachers to staff them could increase further if more States implement preschool programs for 3- and 4-year-old children, as some have begun, and others are planning, to do. In addition, subsidies for children from low-income families attending child day care programs will result in more children being served in centers, as could the increasing involvement of employers in funding and operating day care centers. Legislation requiring more welfare recipients to work also could contribute to demand for child day care services.