Report highlights persistent challenges in early child care workforce
Low wages, limited benefits, and high turnover means Massachusetts is losing nearly $3 billion annually due to inadequate child care, according to a new report
A family childcare run by Martha Conlon of Dedham (Courtesy Neighbor Schools)
DESPITE “FRAGILE PROGRESS,” the Commonwealth’s early child care system continues to suffer from a workforce problem, according to a new analysis published by the Massachusetts Taxpayers Foundation (MTF).
The report makes several policy recommendations and highlights that the state is losing out on billions in tax revenue due to low earnings and lost wages, a lack of employee benefits, and subsequently high turnover.
“Massachusetts loses close to $3 billion each year due to inadequate child care, a loss that ripples across families, employers, and the economy,” MTF policy researcher and report author Victoria Bergeron said. “But it isn’t just about dollars; it’s about supporting educators who nurture our kids while sustaining thousands of small businesses through targeted investments and thoughtful policymaking.”
The Commonwealth Cares for Children (C3) grant program has allowed child care providers across the state to raise wages since the pandemic. The average center-based teacher salary increased from about $39,000 in 2021 to over $47,000 in 2024. However, the report shows that there is still a significant salary gap between the early education and K-12 sectors. The average salary for a K-12 teacher in 2024 was just over $92,000, and center-based educators earn nearly $5,000 less than starting K–12 teachers annually.
Among family child care program owners and assistants, just over 40 percent receive paid time off, around 25 percent receive paid sick leave, around five percent receive discounted child care, and less than 8 percent receive dental insurance and retirements benefits. Just 4 percent of assistants receive health insurance compared to 15 percent of owners.
A much higher share of center-based directors and teachers receive these employer-sponsored benefits, but the report shows that only around 40 percent receive dental insurance, retirement benefits, and discounted child care.
With a lack of paid leave and access to discounted child care, the report notes that many employees are suffering lost earnings due to missing work or reducing their hours to make up for child care gaps.
Turnover rates are high, with nearly 40 percent of assistant educators exiting their roles each year, straining program capacity and limiting access to child care statewide. Although the overall early childhood educator turnover rate has decreased since 2022 from 32 percent to 26 percent, it still meets the US Health and Human Services’ definition of “high turnover” set at 20 percent or above.
Recent data presented by the Data Advisory Commission on Early Education and Care show that 70 percent of infants, 43 percent of toddlers, and around 5 percent of preschoolers in Massachusetts live in an access desert. The state defines this as areas where for every three children there is only one child care slot, though there are some areas where the ratio is greater than ten children to one slot.
“Though the state doesn’t have direct control over the compensation of early educators, the state should continue to use C3 as a tool to incentivize efforts to expand salaries and benefits for the ECE workforce,” the report says.
Career advancement opportunities for early childhood educators remain limited, which also contributes to high turnover rates. The report points to a Department of Early Education and Care (EEC) draft of a new credentialing system that would shift the focus away from participation in higher education courses, which are often difficult for early educators to access, to a two-pathway system.
The new system would allow educators to choose a higher education pathway or professional development pathway focused on apprenticeships, on-the-job training, and mentorship. New credentials and certification levels would be offered by EEC, allowing educators to reach leadership roles outside of the classroom as they advance in their careers. Higher career levels would receive higher pay.
Since the pandemic, the state has significantly increased its investments in the early childhood education sector. Between 2020 and 2025, total funding for EEC has grown by $858 million, or 125 percent. Gov. Maura Healey’s “Gateway to Pre-K” agenda is set to provide universal preschool access – at low or no cost – to every 4-year-old in the state’s 26 Gateway Cities by 2026.
In addition to continued funding for C3 and Child Care Financial Assistance (CCFA) programs, the report recommends further support for an EEC pilot program that provides priority access to CCFA for income-eligible staff working in a licensed early education program. The program addresses educators’ child care needs and creates “a positive incentive for educators to work and remain in the field,” the report states.