Care Economy Challenges
About This Trend
The care economy for both children and the elderly is experiencing challenges. Care worker median pay is only $16 per hour, despite these jobs' intensity and required qualifications. This perpetuates the gender pay gap, given that 85 percent of home care workers are women, and is also contributing to decreasing retention rates of these workers. Childcare workers face similar circumstances. Despite high costs to families, those employed in the industry often earn low wages with no benefits.
Planners can play a role in remediating some of these concerns. A National League of Cities' initiative targeting early childhood workforce development offers ideas, and cities can employ strategies such as financial literacy training and zoning updates to grow their childcare economies. For parents, states are beginning to pass legislation to fill the funding gap for childcare businesses now that federal COVID-related financing has expired. For eldercare and public health broadly, cities can also look to technology, inclusive design, and increased collaboration among stakeholders to improve outcomes.
Trend Updates
Jan. 27, 2026 — 2025 Updates
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The cost of childcare has risen 29 percent between 2020 and 2024.
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Idaho passed a childcare deregulation bill in 2025 that loosens child-to-staff ratios and preempts local governments from setting stricter standards. Proponents say the move is needed to address the state’s childcare crisis, but opponents have raised safety concerns.
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New Mexico is now the first state to offer universal childcare for children up to age five.
Trend Category:
Economic Development
Timeframe: Prepare
As Seen in APA's Trend Report
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