Sacramento’s economy depends on reliable, accessible child care | Opinion

The Sacramento region’s economy is growing, with employers across the region working to attract and retain talent in an increasingly competitive labor market. Yet one of the most essential components of a stable workforce often goes overlooked: Workers’ access to reliable, affordable child care.

Today, the Sacramento regional economy generates over $204 billion in annual economic output, supporting a diverse mix of industries and employers. The region continues to grow, attracting new residents, businesses and investment. Growth across sectors such as health care, advanced manufacturing, clean energy and technology is bringing new jobs and opportunity to the Sacramento region, strengthening our position as one of the fastest-growing economies in California.

But sustaining that growth requires more than business investment and workforce training. It requires the infrastructure that allows people to work. And, for thousands of families, child care is that infrastructure.

When parents cannot find child care that fits their schedules or budgets, they are often forced to reduce work hours, decline promotions or leave the workforce entirely. Businesses feel the impact through staffing shortages, turnover and lost productivity. These challenges highlight why access to child care is becoming an important workforce and economic development conversation across the region.

A strong child care system helps ensure that the region’s growing workforce can fully participate in the economy.

The economic consequences are significant: Based on statewide economic analyses, inadequate access to child care is estimated to cost Sacramento County alone between $1 billion and $1.2 billion in lost economic potential each year.

Each year, Child Action — a Sacramento County–based nonprofit that connects families to affordable, reliable child care — supports roughly 34,000 children, families and child care providers across Sacramento County, helping parents remain in the workforce while ensuring children have access to safe care. The nonprofit helps support an estimated $425 million in annual economic activity by enabling parents to participate in the workforce while sustaining the small businesses that provide child care across the region.

Yet access to child care remains one of the largest barriers facing working families. Without assistance, child care can consume 20% to 50% of a family’s income, making it one of the largest expenses households face.

Reliable child care also helps families build economic stability by allowing parents to pursue higher paying opportunities and advance in their careers.

The effects extend beyond individual households: Child care providers themselves operate small businesses that employ staff, lease space and serve local communities. When the child care system is strong, it supports not only families but also the broader economic ecosystem that employers rely on.

At the same time, many families across Sacramento County still struggle to find child care that meets their needs. Supply shortages, affordability challenges and misalignment between available care and work schedules continue to create barriers for working parents.

Addressing these challenges will require coordinated regional leadership.

Sacramento has long been a region that works together to solve big challenges, and child care should be no different. Policymakers should increase investment, streamline licensing and align funding with the true cost of care. Employers can step up through on-site options, flexible scheduling and partnerships with local providers.

We must also grow the supply of care by supporting early educators with better wages and clear career pathways. If we want businesses to grow and families to thrive, child care must be treated, funded and built like the essential infrastructure it is.

Adonai Mack is CEO of Child Action. Barry Broome is president and CEO of the Greater Sacramento Economic Council.