Childcare workers struggle to afford care for their own kids. NC communities are testing solutions.

The staff of Kate's Korner Childcare Center stands in front of the entrance in Durham. (Photo: Courtesy Kate's Korner)

DURHAM — At Kate’s Korner, the day begins early – children arriving, classroom doors opening, small voices calling for teachers, parents saying quick goodbyes before heading to work.

For the childcare center’s staff, the morning comes with one less worry: they don’t have to figure out how to pay for care for their own children.

The center provides employees with free childcare, a benefit owner Kate Goodwin says is an intentional investment in the workers who care for other people’s children. Some employees use vouchers, but for those who can’t, the center covers all but one week of care a month.

“As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make,” she said. “What we hear often is that our childcare providers can’t pay for the type of care and education they’re providing to others for their own child,” she said.

The approach comes as childcare providers across North Carolina continue to grapple with recruiting and retaining workers.

If childcare workers can’t afford care for their own children, it becomes harder for centers to maintain the workforce they need. Staffing shortages take the shape of smaller classrooms, shorter hours and reduced enrollment.

Kate’s Korner isn’t alone in offering childcare for its employees. In a survey of about 1,200 childcare providers across the state (opens in a new tab), 61% of directors said their programs already offered a childcare benefit to their employees.

But the way those benefits are funded varies. At Kate’s Korner, Goodwin said the center absorbs most of the cost. Meanwhile, other communities are testing whether businesses, nonprofits and governments can help shoulder that expense.

A local experiment

Watauga County offers an example of how communities can help offset those costs, while also supporting the broader workforce.

North Carolina’s labor force participation rate, or the percentage of those working or actively looking for work, is hovering around 58% (opens in a new tab), which is lower than the national average of around 61%. Business leaders say a lack of affordable childcare is a big part of the problem.

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