ST. LOUIS — Analysis from University of Missouri Extension reveals that Missouri loses an estimated $869 million annually due to child care shortages. This includes $723 million in employer costs from absentee workers and turnover along with $146 million in tax revenue that would otherwise be collected to support state and local economies.

“The cost to employers due to a lack of child care access is a tangible data point that helps us better understand how this issue affects businesses and workforce development,” said Luke Dietterle, a specialist for Exceed, an MU Extension regional economic and entrepreneurial development program. “The data we’re collecting can inform ongoing conversations about solutions to Missouri’s child care challenges.”

In a recent MU Extension Exceed Missouri Economy Indicators brief, researchers explored child care availability and affordability across the Show-Me State. They found that for every 10 children under age 5, there are only 4.6 available child care slots; this issue is compounded by a lack of affordability. The brief notes that the average annual cost of full-time child care is $8,100, nearly 14% of a family’s median income.

Alan Spell, MU Extension assistant professor and Exceed director, notes that there are positive points to consider in the realm of child care. As outlined in the recent Exceed brief, Missouri’s child care workforce has rebounded from the pandemic disruption, with 2024 employment up 4% from 2020, Spell said. Statewide, just under half (45%) of Missouri counties reported increased child care capacity in 2025.

To serve child care providers and analyze the economic impact of child care shortages, MU Extension is developing new resources, including a toolkit for practitioners, through the help of MoExcels. A workforce initiative of the Missouri Department of Higher Education and Workforce Development, MoExcels facilitates development and expansion of employer-driven education and training programs and initiatives.

“Through this MoExcels grant, MU Extension is developing a menu of options to help employers and communities improve their early child care situation,” said Sarah Kennedy, MU Extension community development field specialist. “There is not a single solution to early child care. MU Extension wants to meet people where they are at and help them along their journey. Together we can improve early child care across Missouri.”

For more insights on Missouri’s child care landscape, read the latest Missouri Economy Indicator brief at http://muext.us/MEI.

For more information about MoExcels, contact Sarah Kennedy at skennedy@missouri.edu or Luke Dietterle at luke.dietterle@missouri.edu.

About the MoExcels Workforce Initiative

Public colleges and universities were asked to submit proposals for funding in fiscal year 2025 to facilitate development and expansion of employer-driven educational training programs, including entrepreneurship, to increase education attainment and career opportunities for populations historically underserved by higher education. Twenty-three proposals were submitted, requesting a total of $59.4 million. View the FY 2025 Scoring Rubric, Request for Proposals, Recommendations, and Proposal Summaries. Learn more about the MoExcels Workforce Initiative at https://dhewd.mo.gov/initiatives/mo-excels.