New Jersey businesses lose $2.28 billion each year due to childcare disruptions, according to a May 12 analysis released by Moms First’s National Business Coalition for Childcare in partnership with the New Jersey Business and Industry Association.
The report highlights that more than half of these costs are borne by foundational workers, such as teachers, nurses, caregivers, customer service representatives, and employees in transportation and manufacturing roles. These positions are expected to remain essential even as artificial intelligence becomes more widespread in the workplace.
“As companies race to adopt AI, the foundational workers our entire society depends on aren’t going anywhere,” said Reshma Saujani, Founder and CEO of Moms First. “Without childcare, they can’t work. When a nurse can’t find last-minute care, that’s a shift missed. When a teacher’s daycare closes, a classroom goes unstaffed. If companies want a chance at growing in an era of disruption, investing in childcare is one of the smartest bets they can make.”
NJBIA President & CEO Michele Siekerka said: “The findings underscore a profound economic reality: Supporting childcare isn’t a perk — it’s a workforce necessity, particularly for the foundational workers who sustain New Jersey’s essential industries.” Siekerka added: “Expanding childcare benefits and addressing accessibility, affordability, and flexibility gives employers the opportunity to recover the costs of lost productivity, stabilize staffing in mission-critical roles, and strengthen the state’s long-term economic competitiveness.”
According to Start Strong NJ Campaign Director Sharon Levine: “Around the nation, Moms First’s work with business leaders gives a big boost to advocacy for affordable childcare. We look forward to working with them to launch the New Jersey Business Council for Childcare which adds a crucial dimension to our campaign’s efforts.”
Among other findings from “Investing in Childcare: How U.S. Businesses Can Unlock Up to $70 Billion by Providing Childcare Benefits,” developed with support from McKinsey & Company: 76% of New Jersey working parents are foundational workers—about 180,000 people—and nine out of ten parents reported experiencing work-impacting childcare disruptions ranging from absenteeism (affecting 125,000 parents per year) costing employers $520 million annually; top industries affected include healthcare; education; trades; transportation; logistics; retail ($550 million total losses); employer interventions showed positive returns on investment ranging from five percent up to three hundred percent or more.
The statewide data shows that while New Jersey accounts for about three percent of national business losses due to childcare issues—matching its share of overall economic output—parents here leave jobs because they cannot find or afford reliable care at rates above national averages.
A broader estimate by Start Strong NJ puts total annual losses related to wages forgone productivity and tax revenue at $5 billion statewide due largely to high costs making childcare families’ largest expense—even surpassing rent or mortgage payments.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing private-sector employers throughout New Jersey across various sectors while facilitating partnerships among businesses government entities and academic institutions according to the official website.
