The Critical Role of Childcare in Economic and Community Development and the Challenges Facing West Virginia

Charleston, W.Va. – Childcare sits at the crossroads of economic growth, community stability, early childhood education, and family well‑being. Reliable and available daycare is not a convenience for many working parents.

And affordable daycare in all 55 counties has become a major issue that affects economic and community development throughout the state.

When families cannot access affordable, quality childcare, businesses lose workers, communities lose productivity, and children lose crucial early‑development opportunities. West Virginia, like much of the nation, faces profound childcare challenges that must be addressed to build a stronger workforce and brighter future.

Decades of research collected by the WV Association for Young Children confirm that early childhood care and education play a transformative role in brain development, school readiness, and long‑term economic mobility.

Neural connections are formed at extraordinary speed in the first years of life, shaping cognitive, emotional, and social development in ways that stay with us for a lifetime. High‑quality early care environments that are stable, nurturing, and staffed by trained professionals, are essential to laying this foundation.

But the need for quality care goes beyond child development. It is also a workforce issue.

In West Virginia, 56% of children under age 5 have all parents participating in the workforce. Yet, the state’s childcare capacity is far from meeting the current demand. Several counties have no licensed childcare provider at all, while others have only limited slots in home centers.

The result: long waitlists, parents forced to leave jobs or work reduced hours, and employers struggling with absenteeism and turnover. Childcare limitations cost West Virginia millions in lost earnings, productivity, and tax revenue every year.

Affordability is an equally serious barrier. Only 27% of eligible low‑income families in West Virginia receive assistance through the Child Care and Development Block Grant, leaving many families paying more for childcare than for housing. Meanwhile, childcare workers earn an average of less than $24,000 per year.

This wage crisis makes recruitment and retention of the workers who shoulder the responsibility of caring for and educating the state’s youngest residents extremely difficult. The low wages fuel turnover, reduce quality, and force centers to limit enrollment, sometime to the point where classrooms sit empty.

The West Virginia Department of Human Services has emphasized that while there is currently “no immediate funding crisis...", the state is relying on temporary federal dollars to maintain subsidy levels, which funds will not last indefinitely. Combining the issues of low wages with uncertain future sources of funding, the situation appears very concerning to legislative leaders, economic development officials, and childcare providers alike.

Policymakers must prepare for what comes next. As experts have noted, childcare is a “broken market.” Parents cannot afford the true cost of care, and providers cannot operate sustainably on the fees families are able to pay. Without a strategic, long‑term funding plan, the system will continue to teeter between instability and crisis.

The broader national landscape offers both caution and hope. Many states are rethinking the role of childcare in economic development, with federal policies such as the expanded employer childcare tax credit encouraging businesses to participate in childcare solutions. Employers of all sizes can now receive increased credits for investing in on‑site care, partnering with childcare providers, or helping employees afford care. These incentives could be a powerful tool for West Virginia businesses seeking to grow their workforce.

West Virginia has long recognized the value of childcare providers and their contributions to families, communities, and the broader economy. If West Virginia wants to strengthen its workforce, attract new employers, support young families, and give birth-to-three-year-old children a headstart on their education, then investing in childcare is an essential component to economic growth and success.

The path forward requires a multi‑pronged approach: stabilizing funding, expanding the workforce through better compensation and training, increasing access to childcare, and partnering with the private sector to innovate.

Economic growth and success are intertwined with childcare. Effective community development needs affordable, high-quality childcare. I stand ready to assist and support the West Virginia legislature in every way possible as it considers solutions to address this challenge for the future of West Virginia.