Alaska business experts say that the constant child care crisis in Alaska has a negative impact on employers in the state as well as the economy.
“This is an issue that’s affecting its bottom line” stated Kati Capozzi President of Alaska Chamber, the state’s largest business advocacy organization. “It’s affecting their ability to attract and keep employees. It’s affecting morale as well as the satisfaction of employees.”
Capozzi is also part of the taskforce established by Governor. Mike Dunleavy this year to deal with child care issues within the state. She gave a report from this chamber’s taskforce during the meeting on Wednesday. The report was a look at how child care affects the state’s economy and businesses. One of the main findings is that states are losing lots of money each year due to the lack of childcare.
“We discovered that approximately $152 million have been left out of the Alaskan economy due to people opting out of the workforce or work in a lower capacity,” Capozzi said.
She noted that about one-third of Alaska employees with children at home were absent from work over the past year due to childcare problems. The reason for this is various factors, including the absence of childcare options for children living in urban areas as well as children care shortages that are more rural Alaskans.
“There is a gap in income that’s for sure about that,” Capozzi said. “But even those with high incomes aren’t getting enough and not going into work.”
Capozzi noted that for people working in the child care industry it’s hard to keep afloat, particularly following the pandemic.
“A majority of child care facilities decided to shut down because of the outbreak, and they haven’t been reopened since,” Capozzi said. “It is a flawed business model. The center for children and even the home-based facility is a flawed business model. This is why there are lots of parents who are opting not to seize this chance.”
Capozzi was thrilled to see the task force conducting an “true costs of caring study” to understand more about the cost to run a child-care facility, and also how to improve their support for the future.
