Missouri is already paying for its childcare problem

Column by Rob Jones, director of Integrated Marketing Communications, University of Missouri Extension, and Sarah Kennedy, field specialist in community development, MU Extension.

When we talk about infrastructure, most people think of roads, bridges, and broadband. Those systems matter because they connect people to opportunity and allow businesses to operate efficiently.

Childcare plays a similar role.

Across Missouri, gaps in the childcare system are limiting workforce participation and slowing economic activity. The state is already paying a steep price for those gaps.

Each year, businesses lose more than $950 million in productivity and turnover tied to childcare challenges. When lost wages and reduced tax revenue are included, the total impact exceeds $1.1 billion annually. At the same time, capacity continues to shrink. Since early 2025, Missouri has lost 94 childcare facilities and now serves more than 2,300 fewer children.

What this means for workers and employers

For many families, childcare determines whether work is possible. When care is unavailable or unreliable, parents reduce hours or leave the workforce.

Employers feel those disruptions directly through turnover, missed shifts and hiring challenges.

At the same time, the childcare system itself is under pressure. Most providers in Missouri are small, independent businesses, many operating alone in a highly regulated environment with limited margins. Providers manage everything from education to compliance to finances, often working long hours to keep their programs running.

These constraints make it difficult to expand capacity or stabilize the workforce.

Why costs keep rising

The strain on the system is reflected in what families pay.

According to ChildCare Aware of America, the annual cost of childcare for one child in Missouri is more than $12,000, nearly 15% of median household income.

Families struggle to afford care, while providers struggle to operate sustainably. As a result, supply remains tight and access varies widely across the state.

Why it matters for children

It is also important to consider what access to childcare means for children.

Early childhood programs support language development, social skills and early learning. Researchers from the University of Chicago and the University of Southern California found that children who continually participate in high-quality early education are more likely to graduate, earn higher incomes and experience better health outcomes later in life.

Those outcomes take time to fully happen, but they begin early. Children with access to stable care are more likely to enter school ready to learn, which shapes their trajectory in the following years.

Understanding the scale of the challenge

Children’s Trust Fund and Kids Win Missouri estimate that building a fully functioning early childhood system would require about $1.2 billion annually.

That number represents the scale of what is needed to meet demand and create a stable system. When compared to the more than $1 billion in annual economic losses tied to childcare shortages, Missourians are already paying the cost of limited access every year.

What solutions are emerging

There is no single approach to addressing these challenges, and states are experimenting with a range of strategies.

Some focus on sharing costs. Missouri’s Tri-Share program divides the cost among employees, employers and the state, with each contributing about $4,100 annually. Other approaches rely on public investment to close the gap between what care costs and what families can afford.

Workforce strategies, including training pipelines and apprenticeship programs, aim to stabilize staffing. Other efforts focus on helping providers operate more efficiently through shared services and administrative support.

In practice, many communities are combining elements of these approaches based on their local needs.

MU Extension’s role

University of Missouri Extension is helping both define the problem and support practical solutions across the state.

MU Extension research has helped quantify the economic impact of childcare shortages, giving decision-makers a clearer understanding of what is at stake. At the same time, MU Extension is working directly with providers and communities.

Through the Early Childhood Hub, childcare providers can access trainings on topics like family engagement, child development and community capacity-building. These programs are designed to strengthen the quality and stability of care.

MU Extension also supports providers through its Small Business Development Centers, which offer guidance on financial planning, operations and sustainability. For many small providers, that support can be critical to staying open and growing.

Together, these efforts connect research, workforce development, and business support in ways that help strengthen Missouri’s childcare system. Still, it will take collaboration among employers, educational institutions, community leaders, childcare providers and policymakers to fully improve our childcare system.

Looking ahead

Missouri’s economy depends on systems that allow people to work and businesses to operate effectively. Childcare is one of those systems.

The data shows that gaps in the system carry real costs. It also shows that thoughtful investment and coordinated approaches can strengthen workforce participation, support businesses and expand opportunity across the state.