The nation’s child care crisis is likely to ramp up in 2025 — and cause challenges for many employers as return-to-office requirements ramp up.

Hybrid work lost considerable momentum among corporate titans in 2024,
with several heavy hitters announcing full-time returns to the ofce.

That momentum is expected to continue in 2024 — and will likely leave
many companies staring down the fallout from the nation’s child care
crisis.

Many child care centers were already struggling or operating on razor-thin
margins before the pandemic. Covid-19-era funding provided a critical
lifeline, but that funding expired.

What is being called the child care cliff could cost an estimated 3.2 million
child care spots, according to The Century Foundation.
But, when coupled with more stringent return-to-office regulations —
eliminating the flexibility some workers have utilized since the pandemic
— the end result is expected to force many parents to make tough choices.
Some are likely to leave the workforce altogether.

“Some people will leave their jobs, some will reduce their work hours, but
some people don’t have that option and need to work to support those
families,” said Julie Kashen, senior fellow and director for women’s
economic justice at The Century Foundation.

Against the backdrop of a tight labor market and the child care cliff,
experts say businesses should think outside the box when it comes to
employees who are parents.

Sadie Funk, national director at The Best Place for Working Parents, said
organizations should fully evaluate the needs of their workforce.

“Think about the benefits you may be putting in place or taking away, and
being responsive to the needs of your workforce,” Funk said, adding
employers should check in and have conversations with workers.

Some companies are rolling out new benefits, such as stipends, drop-in
child care discounts and other benefits.