It’s no understatement that the economy has been devastated by COVID-19, leaving us struggling with a proper plan to help the economy move on. While childcare and backup care services have been impacted by COVID-19 like any other industry, they also provide the key to economic progress by allowing working parents to resume their jobs and stimulate the economy.
The Economic Effects Of COVID-19
While certain sectors of the economy have been hit worse than others, every industry in the United States has been affected by the COVID-19 outbreak. With stay-at-home order shuttering businesses all over the country, the national unemployment rate to reach a staggering 14.7% by mid-April. Lawmakers and business owners are looking for a way to minimize this massive blow to the economy, introducing stimulus packages and detailed plans that lay out a path to economic recover.
The childcare industry has also been damaged by COVID-19, as many daycares and backup care providers have been forced to shut down or reduce their hours. Surveys show that only 11% of childcare providers can survive indefinite closure without government support. This is why the US government has included funding for the childcare industry in its most recent stimulus package, providing $3.5 billion of funding to the states for childcare and backup care providers.
Childcare Offers A Solution For Economic Growth
The funding provided for childcare in the COVID-19 relief package is a smart move on the part of the government, as childcare is proving itself to be a vital component of economic growth after COVID-19. Reports have shown a strong link between childcare and economic growth and development, as it’s estimated that childcare has an economic impact of $99.3 billion and supports over 2 million jobs in the United States.
Backup care is essential in order to restart the economy and support initiatives for job creation such as investments in infrastructure and energy efficiency. None of these plans for economic growth are possible if working parents aren’t able to return to work knowing that their children are taken care of. Now that we’re entering the summer months and businesses are slowly starting to reopen, backup care is crucial to replace traditional childcare arrangements that have been affected by COVID-19.
Backup Care After COVID-19
Backup care options have allowed childcare services to adapt to a post-COVID world, offering in-network and out-of-network childcare services to working parents. With the use of backup care services like Helpr, parents can request a qualified childcare professional to be sent to their home in as little as 3 hours. The flexibility of backup care gives them an affordable childcare option that allows them to do their jobs and help bring the economy back online.
If businesses want to bring their employees back to work as soon as possible after COVID-19 restrictions are lifted, the best way to do so is by investing in childcare services. Offering backup care as an employee benefit can help fill these empty jobs and ensure a swift return to economic progress.
