Early child care & education pours $1.9 billion into local economy

By Barbara Correa

The business of caring for and educating preschool children generates $1.9 billion a year for the local economy and employs more than 65,000 people, according to a study released Monday by Los Angeles Universal Preschool, the Los Angeles County Child Care Planning Committee and the city of Los Angeles.

The study projects that early child care and education will create the sixth highest number of new jobs in Los Angeles County through 2016.

Auxiliary services connected to day care and preschool include clerical staff, social workers, bus drivers, food service workers, all of whom contribute back to the local economy, the study said.

"That's more than is employed in computer and electronics manufacturing," said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp. and a panelist at an event presenting the findings. "People think that child care is a net outflow, but it does recirculate money into the economy."

National and state studies have shown that the child-care industry is important, but this report is unique in that it focuses specifically on Los Angeles County.

"We didn't know that this (industry) is $1.9 billion," said Randi Wolfe, director of workforce development at Los Angeles Universal Preschool, a public corporation formed in 2004 and funded by a tax on tobacco. "I didn't even know if it would be in the top 20. That means jobs and the question becomes how do we train these people and how do we set things up?"

Wolfe said L.A. County is home to about 1 million children from birth to 13 who need before- and after-school care, and there are just 250,000 licensed slots in day cares, preschools and before- and after-school programs for those kids.

She acknowledged that funding the expansion of that number is an uphill battle, especially with the budget trouble the state faces. But Wolfe said support is growing for more child care.

"The presidential candidates are talking about it. Hillary came out with a plan recently. ... For every dollar we spend (on early child care and education), we save $2.62 on jails, mental health services, juvenile delinquency. The benefits of a good early care and education experience ends up costing taxpayers less in the end," she said.

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