The early childhood education sector is facing a deepening crisis, with rising costs, staff shortages, and low morale pushing many providers to the brink of collapse. A recent survey conducted by the National Association for the Education of Young Children (NAEYC) paints a troubling picture of an industry struggling to stay afloat.
Unsustainable Conditions for Early Educators
The survey, which gathered responses from 10,000 early childhood educators across the United States, reveals that many providers are grappling with increasing financial pressures. About one-third reported higher rent costs compared to the previous year, while nearly half faced rising expenses for property and liability insurance.
“Everything is just going up in price all the time,” said Meredith Burton, director of the Furman University Child Development Center in Greenville, South Carolina. Although her program benefits from rent-free space within the university, other costs—including utilities, cleaning supplies, and food—have surged since 2020.
The financial strain is making it difficult for many programs to pay staff livable wages. Without additional funding, many providers fear they may have to close their doors.
Tuition Hikes and Staffing Struggles
Jennifer Trippett, director of Cubby’s Child Care Center in Bridgeport, West Virginia, has been in the field for 28 years. For the first time in 2024, her program experienced a budget shortfall. To address the deficit, she raised tuition by 20% in January. She is not alone—55% of providers surveyed by NAEYC reported similar tuition increases in the past year.
Despite these measures, Trippett is considering shutting down some classrooms in August due to staffing challenges. “Every day, I’m walking on eggshells,” she said. “Who’s going to call off? Who do we have to cover for? That’s the game we’re living in.”
In 2019, wages for childcare workers were competitive with retail and hospitality jobs. But now, those industries have significantly increased pay, leaving early education providers struggling to keep up. Trippett’s center pays staff between $12 and $16 an hour, while local gas stations and retail stores offer similar or higher starting wages.
“I really need to give my staff a raise,” she said. “But I can’t ask families to pay more than they already do.”
Declining Enrollment and Low Morale
The survey also found that more than half of childcare providers are operating under capacity. When asked why, 41% cited parents’ inability to afford care, while 37% pointed to low wages making it difficult to attract and retain qualified staff.
Burton, the South Carolina provider, noted that early educators gained recognition as essential workers during the pandemic. But that recognition has since faded. “It feels like a slap in the face,” she said. “We’re expected to work long hours for low pay and almost no benefits while delivering the highest quality care. That’s just not sustainable.”
Morale among early educators is plummeting. Nearly half of those surveyed reported worsening burnout over the past year, with low wages, job demands, and inadequate resources contributing to exhaustion. Many are also struggling to support children with developmental and behavioral needs that they have never encountered before.
Uncertainty Around Federal Support
Further complicating matters is uncertainty around federal funding. A temporary funding freeze in February caused panic among Head Start programs. Meanwhile, about 230,000 early childhood educators—roughly one in four—rely on Medicaid for health insurance and fear potential cuts.
The industry needs more investment, not less, argued Hains. “We’ve gotten used to how bad things are,” he said. “But this remains a crisis, even if we’ve grown accustomed to it.”
Without urgent action, many fear that early education providers will continue to close, leaving families with fewer options and educators without sustainable careers.
