Economic Impacts of Childcare : What does Manitoba research tell us? March 12, 2015 “Childcare Builds Vibrant Communities,” Building Momentum Symposium Portage la Prairie, MB Susan Prentice Sociology, University of Manitoba Child Care Coalition of Manitoba

Manitoba ThompsonParkland (RMs of Dauphin, Ethelbert, Gilbert Plains, Grandview, Hillsburg, Shell River, and Dauphin, Ethelbert, Gilbert Plains, Grandview, Roblin) Winnipeg St-Pierre-Jolys

Child Care Coalition of Manitoba

Economic Techniques Cost-benefit –Costs - returns = benefit/loss –Long-term analysis, generally on child outcomes (Canadian problem, given lack of studies) Input-output, also known as ‘multiplier’ analysis –Shorter-term measures of economic activity, separate from cost-benefit returns –Measures effects of dollars ‘rippling’ through local economies Ripple effects are larger when leakages are smaller

Different Economic Approaches Cost-Benefit USA Perry Pre-School: $1 - $17.07 Abecedarian Study: $ Chicago PC: $1 - $ all targeted Canada Cleveland & Krashinsky, 1998: $1 - $2 - universal program Input-output USA 70+ economic impact studies using IO methodology Canada Quebec: 40% of system cost returned through increased taxes; maternal labour force boosted; each $1 returns $1.75 Manitoba

USA Impact Studies At least 70 studies (including town, region and state) in the USA since 2000 –50 state searchable database at

Manitoba Childcare Multipliers Input-output analysis –Every $1 spent on childcare generates $1.58 of economic activity Analysis by Statistics Canada, using Employment multiplier –Every 1 childcare job creates or sustains.49 other jobs In addition to supporting the labour force participation of parents

Sector Value Parkland $1.73 million of direct revenue Generates economic activity worth $2.74 million Thompson $2.1 million of direct revenue Generates value economic activity worth $3.4 million St-Pierre-Jolys $455,000 of direct revenue Generates value economic activity worth $719,000 Every $1 spent on childcare generates $1.58 worth of economic activity

Parent Employment Parkland – % of mothers in RHA labour force –Childcare users (f/t): est. $12.4 million wages Thompson – % of mothers in RHA labour force –Childcare users (f/t): est. $18.8 million St-Pierre-Jolys – % of mothers in RHA labour force –Childcare users (f/t): est. $3.6 million

Employment Multipliers Parkland –76 full and part-time staff –Creating/supporting a further 28 FTE – Thompson – 69 full and part-time staff – Creating/supporting a further 34 FTE – St-Pierre-Jolys – 16 full and part-time staff – Creating/supporting a further 6 FTE …. In addition to parental employment

Social Impacts Rural Childcare Child safety Farm economies Rural infrastructure Depopulation Seasonal & flexible Transportation General Children Families Women Economy Combating Poverty

Social Impacts General Children Families Women Economy Combating Poverty Northern Childcare Diversification Depopulation Aboriginal Northern economies Quality of life Northern costs, ECE training, quality

AMM, Policy 1607 WHEREAS childcare is an essential element of rural infrastructure, helping rural families to combine work and family, enabling parents to earn off-farm income, and thus strengthening the rural economy; AND WHEREAS childcare services promote farm safety, and can mitigate out migration and population decline; AND WHEREAS childcare services have significant local economic impacts in the short-term, as every $1 spent on childcare generates $1.58 of economic benefits through ripple effects; childcare services create employment for early childhood educators; and the spending from every 2 childcare jobs supports another full-time job, in addition to enabling parents labour force participation; AND WHEREAS high quality childcare services also generate significant economic effects in the long- term, by promoting children's development, school-readiness, and helping children who are disadvantaged by poverty; AND WHEREAS over half of mothers in rural areas are in the paid labour force, and face barriers to paid employment when childcare services are absent; AND WHEREAS licensed childcare services exist for just 14 per cent of Manitoba children aged 0-12, parent fees are high and subsidies are restrictive, and trained early childhood educators are scarce, due to low wages and benefits; Therefore Be It Resolved That the AMM lobby the Province of Manitoba to provide more capital and operating grants for smaller rural operations to establish local childcare services and through encouraging the provincial government to provide incentives to increase the pool of trained early childhood educators in rural areas.

AMM, 2008