More jobs for the poor means a need for more childcare

Talk Poverty - For low-income families, poverty complicates every aspect of their daily lives, from holding a job, to finding transportation, to raising healthy children. For these families, Mayor Bill de Blasio’s recent executive order raising the hourly minimum wage from $11.90 to $13.13 for employees without benefits is an important step forward. Contrary to misconceptions about people in poverty, these families work, and they work hard. In fact, there are 265,000 low-income families in New York City with at least one working parent. The new wage will increase the annual income of thousands of workers from $16,640 to $27,310, lifting a family of four above the federal poverty line.

While an increased minimum wage will be an enormous help to struggling families, it isn’t enough. We need to invest in other work supports that ease the economic strain on families and create thriving communities.

The Economic Policy Institute calculates that to achieve a “modest living standard,” a family of four needs $94,676 to live in New York City, including over $2,000 for child care each month. When even middle class parents are “crushed by the cost of child care,” you know that low-income families are feeling the pain even more. In the state of New York, the average cost of an infant child care center consumes 58% of the state median income for a single mother. One study found that child care is the single greatest expense among low-income families in the city.

That is why access to early childhood education, quality childcare, and after-school programs should be implemented hand-in-hand with minimum wage raises—they serve as a multiplier of a family’s earned income because parents don’t have to pay for costly or unsafe child care, and they also allow parents to go to work. The proof is in the data: More than 70% of New York City parents with kids in an after-school program said that the program made it easier for them to keep their jobs; that they missed less work; and that they were able to work more hours. Low-income parents with child care subsidies are also less likely to have child care disruptions that hold back their careers or result in job loss.