BATON ROUGE — A new report released on Tuesday shows that child care challenges are limiting parents’ employment opportunities and that statewide, comprehensive early childhood education could generate $3.2 billion in additional earnings and $5.3 billion in economic output.

That's according to the Louisiana Policy Institute for Children, which released “The Missing Piece: Quality Early Childhood Education as an Essential Component in Addressing Louisiana’s Labor Force Needs,” on Tuesday.

The report examines how child care access affects parents’ ability to work and Louisiana’s economic success, combining a statewide survey of 500 Louisiana adults with children under the age of 5 with an economic analysis developed by the Kathleen Babineaux Blanco Public Policy Center at the University of Louisiana at Lafayette. Researchers at Louisiana State University led the survey phase of the study.

The findings show that in today’s current system, child care challenges are limiting parents’ employment opportunities, with more than one-third of respondents reporting reduced work hours and almost 1 in 5 reporting they had to quit a job because of child care issues.

The economic analysis in the report examines the impact a comprehensive early childhood education system would have on Louisiana families and the economy. That analysis finds that statewide, comprehensive early childhood education could generate $3.2 billion in additional earnings and $5.3 billion in economic output.

The results provide insights into the connection between child care and Louisiana’s workforce, emphasizing the following:
-Child care challenges disrupt employment. Parents report reduced work hours, leaving jobs, and experiencing inconveniences such as arriving late or leaving work early due to child care issues.
-Affordability remains an issue. Nearly 70% of respondents reported some difficulty finding affordable child care, while 36% described that search as extremely challenging.
-Expanded access to early childhood education could strengthen the economy in Louisiana. The analysis estimates that statewide comprehensive early childhood education could bring almost 30,000 additional parents into Louisiana’s labor force and generate roughly $129 million in new annual state tax collections once labor force and earnings gains have fully adjusted.

"Louisiana’s parents want to work and provide for their families, but too many are held back by the cost and availability of child care,” said Libbie Sonnier, chief executive officer of LPIC. “This report makes it clear that early childhood education must be a part of Louisiana’s workforce strategy going forward. Investing in reliable, affordable care can help parents stay employed, businesses find the workers they need, and our children get a strong start.”

Child care challenges place a particularly heavy burden on single parents and families with lower incomes. Nearly three-quarters of single- parent respondents reported reducing their work hours due to child care issues, while one-third reported quitting a job. These disruptions can undermine families’ financial stability and make it harder for employers to retain workers.

“As Louisiana attracts new investment and creates economic opportunities, access to quality child care is essential to ensuring businesses have the workforce they need,” said Scott Poole, chief executive officer of RoyOMartin and a LABI member. “When parents can find reliable, affordable child care, they can enter the workforce, stay on the job and provide for their families. Strengthening child care access is a direct investment in Louisiana’s workforce, businesses and long-term economic growth."

The projected economic benefits include gains from increased workforce participation and fewer child care disruptions, along with the broader effects of additional business and household spending.

The $5.3 billion estimate represents gross economic output, including sales throughout the supply chain. The analysis does not include longer-term benefits such as higher lifetime earnings for children who receive early childhood education. Louisiana has an opportunity to strengthen its workforce by making quality early education more accessible to working families.

The complete findings from “The Missing Piece: Quality Early Childhood Education as an Essential Component in Addressing Louisiana’s Labor Force Needs” can be found here.

Survey data was collected April 13-21, 2026. The report was made possible with support from Entergy and the W.K. Kellogg Foundation. For more information on LPIC, please visit PolicyInstituteLA.org.
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