Utah businesses lose billions annually because of childcare issues

Jan 19, 2023, 3:13 PM | Updated: 3:16 pm
A new report shows that Utah businesses are losing over $1 billion a year because employees have to...
A new report shows that Utah businesses are losing over $1 billion a year because employees have to deal with childcare issues. More specifically, $1.36 billion and $258 million are lost in tax revenue annually. (Getty Images)
(Getty Images)

SALT LAKE CITY — A new report shows that Utah businesses are losing over $1 billion a year because employees have to deal with childcare issues. More specifically, $1.36 billion and $258 million are lost in tax revenue annually. 

The report found that a big part of those losses comes from employee absences and turnover.

The report, released by a management consulting group, Cicero Group, is intended to “help the business community better understand the unique needs of working parents,” the group said.

Leaders in the Salt Lake Chamber of Commerce said insight from the report could provide an opportunity to look for better solutions to providing childcare.

The problem begins with a difficult choice

According to the report, the problem, which impacts more women than men, begins when parents have to choose between work and taking care of their kids.

Over 50% of families have to step away from work regularly. And tens of thousands had to leave work in the last year.

And while COVID-19 had a large impact on parents, children, and businesses, the Salt Lake Chamber of Commerce said the pandemic isn’t to blame. They said there was already a big tug-of-war between employees and their need for childcare.

“Over 50% of families deal with disruptions or have to step away from work regularly to deal with childcare issues,” said Jacob Allen, who is a senior partner with Cicero Group.

“Childcare is crucial to Utah’s economic infrastructure and provides a stable foundation for the state to continue to thrive as a business environment,” the report concluded. 

Childcare in the 2023 Utah Legislative Session

A bill addressing childcare may soon be addressed by lawmakers. HB167 is currently making its way through the 2023 legislative process.

Sponsored by Rep. Ashlee Matthews, D-Salt Lake City, HB167 would create a state childcare pilot program. It would allow certain state agencies to contract with a childcare provider to establish an on-site childcare center for the agency’s employees.


Related reading

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

A hiring sign is displayed in the window of a Panera Bread store in Pittsburgh on Monday, Jan. 23, ...
Paul R. La Monica, CNN

Jobs report to give further clues about where economy is headed

Economists predict that 185,000 jobs were added last month, a slowdown from the gain of 223,000 jobs in December and 263,000 in November.
13 hours ago
File**People walk past the entrance to a Bed Bath & Beyond retail store along Sixth Avenue in N...
Paul R. La Monica and Nathaniel Meyersohn, CNN

Bed Bath & Beyond says it can no longer pay its debts

The end could be near for struggling retailer Bed Bath & Beyond, as it warned in a regulatory filing Thursday that it received a notice of default from its lender, JPMorgan Chase.
3 days ago
With 24 other states on board, the Utah Attorney General announced on Friday a lawsuit against a De...
Simone Seikaly

Utah leading a lawsuit against new ESG rule affecting 401(k) plans

Utah Attorney General Sean Reyes said the states in the lawsuit are concerned about the federal government's promotion of ESG investing.
3 days ago
savings system right on the money...
Mark Jones

Economists are worried of a recession in 2023, financial expert weighs in

Many economists are fearing a recession in 2023 despite the U.S. economy ending last year better than expected.
4 days ago
A new service called Cottonwood Connect could address parking problems at the ski resorts in Big an...
Kate Davis and Simone Seikaly

Cottonwood Connect offers a new way to get up Cottonwood Canyons

The goal is to fill gaps left when UTA limited ski bus service. The shuttle will run Thursday through Sunday through mid-April.
4 days ago
The U.S. economy expanded at a 2.9% annual pace from October through December, ending 2022 with mom...
PAUL WISEMAN AP Economics Writer

US economy slowed but still grew at 2.9% rate last quarter

Most economists think the economy will slow further in the current quarter and slide into at least a mild recession by midyear.
4 days ago

Sponsored Articles

Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer, the tests that can warn women about potential cancer, and the importance of vaccination.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
Utah businesses lose billions annually because of childcare issues