U.S. families are facing significant financial burdens when it comes to childcare costs, according to a recent federal report. The National Database of Childcare Prices (NDCP) from the U.S. Department of Labor’s Women’s Bureau reveals that families spend between 8.9% and 16% of their median income on full-day care for one child, with annual costs ranging from $6,552 to $15,600 nationwide in 2022.
The report provides a county-level analysis of childcare prices across the nation. In New Jersey, for example, the cost of infant care in a childcare center ranged from $14,870 in Warren County to $16,984 in Morris County during 2022. Adjusted for inflation, these costs are estimated to be between $16,491 and $18,835 in 2024.
Despite these high expenses faced by approximately 13.6 million U.S. parents who depend on paid caregivers, the report highlights that childcare providers operate on narrow financial margins and workers receive relatively low wages.
Althea D. Ford, Vice President of Government Affairs at NJBIA, noted challenges faced by the childcare industry during a recent legislative hearing: “What was made clear at the joint committee is the fact that what families are paying for childcare isn’t even what this childcare actually costs – it’s what the market can bear,” Ford said. She added that “the true cost of childcare is closer to $26,000.”
The report also compares childcare prices with median family incomes across 2,512 counties nationwide. In New Jersey's Cumberland County and Hudson County families spent substantial portions of their income on infant care—19.6% and 17.4%, respectively.
DOL Women’s Bureau Director Wendy Chun-Hoon expressed concern over these findings: “The fact that the median cost of center-based infant care is more than the median cost of rent should be of urgent concern,” she said.
Part-day care for school-aged children constitutes another significant expense for families across the country—from $5,943 up to $9,211 per child annually—which amounts to 8.1% to 9.4% of median U.S. family income.
In New Jersey's Camden County and Hudson County respectively spent about 6.4% and 8.2% of their income on center-based care for school-age children before and after school hours.
Cumberland County again stands out with families spending as much as 9.1% on similar services while dedicating larger shares—19% or more—of their incomes toward toddlers’ preschool needs along with infants’ daycare requirements.
For further details regarding discussions held at Nov.'s Assembly Aging & Human Services Committee meeting concerning escalating childcare expenses please refer here [link].
