Hawaii’s child care industry is in crisis. Before the pandemic, parents placed infants on long waitlists for child care. Since then, the demand for quality child care and early education has far exceeded the number of qualified child care professionals available in the state. Hawaii’s child care providers reduced capacity from 23,803 seats to 20,147 seats because child care professionals are leaving the industry due to nominal pay. Yet, People Attentive to Children (PATCH) estimates there are at least 56,858 keiki with two working parents.

Our families and businesses rely on child care to keep Hawaii’s economy secure, but we have failed to support the people who sustain this critical industry.

The consequences for Hawaii are dire: Soaring child care costs, limited access to quality care, and a workforce struggling to balance work and family demands. But, according to the 2022 Research and Development (RAND) study on Early Childhood Educators in Hawaii, wages for child care workers are abysmal, hovering around $15.18 per hour on average or $31,574.40 per year before taxes. Hawaii’s high cost of living has led to a severe shortage of qualified caregivers.

Hawaii lost 20% of its child care workforce — from 4,260 to 3,410 in the early childhood teaching workforce — between 2018 and 2020, according to the Center for the Study of Child Care Employment. Many preschools and child care providers statewide report operating at reduced capacity — sometimes as much as two-thirds of licensed capacity — due to staffing shortages.

The child care crisis in Hawaii is not just an economic issue; it’s a gender issue. Women are bearing the brunt of this crisis, often being forced to leave the workforce to take on child care responsibilities. A study by the Brookings Institute revealed that if women participated in the workforce at the same rate as men, the nation’s gross domestic product could be 5% higher. The need to expand access to affordable, quality child care is not just a social issue; it’s a critical economic strategy.

In 2023, the Chamber of Commerce of Hawaii launched its 2030 Blueprint for Hawaii, a long-term strategic plan to increase economic competitiveness through policy reforms based on qualitative and quantitative data. The report found that Hawaii’s employment growth rate is just 4.4%, lower than any other state since the pandemic. Lack of access to child care is a top reason for workforce shortages and slow growth.

We strongly support House Bill 1964, which proposes state subsidies to retain and recruit child care workers. These workers are not just caregivers; they are the ones who shape and educate our future leaders. By increasing child care workers’ wages, we acknowledge their hard work and make a significant investment in the future of Hawaii.

According to the Harvard Business Review’s 2021 “Child Care is a Business Issue” report, lack of access to quality child care is detrimental as employers suffer from lost productivity and working parents endure lost wages and reduced retirement benefits if they are caregiving. A 2023 study by Ready Nation found that, nationally, child care challenges cost parents more than $5,500 a year, or $78 billion total, and on average, businesses lose $1,640 for each working parent, or about $23 billion annually.

If we do not provide livable wages for caregivers, it negatively affects our workplaces, our workforce, and Hawaii’s economic resilience.

Quality child care is essential for a thriving business community and resilient economy, as early childhood care and education professionals are the workforce behind other workforces. We urge the Legislature to support the modest pay increases proposed for child care workers in HB 1964 because investing in our keiki is an investment in Hawaii’s future.

Sherry Menor-McNamara is CEO of the Chamber of Commerce of Hawaii; Chevelle Davis is director of early childhood and health policy for Hawaiʻi Children’s Action Network Speaks!