Industry revenue of child day-care services in the U.S. 2011-2023

The US child day-care industry is one of the largest in the world, owing mainly to the prevalence of a culture where both parents choose to pursue a career. Cumulatively, the industry is estimated to value as much as 235 billion U.S. dollars during 2019-2023. It is also no surprise that child-care is one of the biggest items in families’ monthly budgets, according to a 2017 study by Child Care Aware of America. As such, the annual average spending on day-care centers has been on the rise, having surpassed 10,000 U.S. dollars per household as of 2018.

Lack of adequate government support restricts industry growth

Despite the optimism surrounding the industry in the U.S., it still has a smaller market as compared to Germany. This is a surprise especially becauseGermany’s population is almost one-fourth that of the U.S. One of the main reasons for this is the difference in government support with Germany ensuring that the annual childcare expenditure in the country does not surpass 10% of the average household income at any time. The U.S., on the other hand, has no such policies in place, which has often resulted in the spiraling of day-care costs.

Child-care cost influencing other personal and professional choices

With limited support from the federal government, it is becoming difficult for most of the low to middle-income households to meet the required expenses. This is why some women prefer to stay at home to take care of the infant or hire a babysitter instead of opting for the day-care centers. In fact, according to a survey conducted by Statista on baby care, 45% of the respondents cited taking a break from work just to take care of the baby. The financial burden is also having an impact on decisions made on housing, with people now either choosing to buy a cheaper home, postponing the acquisition plan in the short term or even relocating to a place with a lower cost of living, as revealed in another survey by Freddie Mac in April 2019.

Industry revenue of child day-care services in the U.S. from 2011 to 2023

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Supplementary notes

* Estimate - This also applies for past years as data provided by statistical institutions often is not available for more recent years.

The industry classification is based on the Naics 2017 - system in the U.S.. The industry “child day care services“ has the code “6244“.

Details on the methodology can be found here.

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