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North Carolina childcare workers face care costs that can take a substantial share of their income, adding pressure to an already strained workforce. Some centers provide employee childcare, and a Watauga County initiative supported 18 workers with 22 children; a statewide subsidy has not been announced in the source report.
North Carolina childcare providers are trying different ways to help workers pay for care for their own children, as high costs add pressure to recruitment and retention, according to a report by The 74 and NC Newsline. A Watauga County assistance initiative awarded support to 18 childcare employees with 22 children, while some centers, including Kate’s Korner in Durham, provide care as an employee benefit.
At Kate’s Korner, owner Kate Goodwin said the center covers most of the cost of employees’ childcare. Some staff use vouchers; for others, the center pays all but one week of care each month. Goodwin said the benefit reflects a decision to accept slimmer business margins to support staff. The report does not specify the center’s total cost for the benefit or how many employees use it.
A survey of about 1,200 North Carolina childcare providers found that 61% of directors said their programs already offered a childcare benefit to employees. The survey figure describes whether a benefit was offered; the supplied report does not detail how many workers received it or how the programs funded it.
In Watauga County, the Boone Area Chamber of Commerce Foundation launched an assistance initiative the previous year, supported by $40,000 from local donors and businesses. It helped 18 employees with 22 children, averaging $684 per child. The report describes this as a local program, not a statewide benefit.
Care Costs Can Strain Staffing
The issue links the cost of childcare for workers’ families to the availability of care for other families. The report says staffing shortages can mean smaller classrooms, shorter hours and reduced enrollment. If employees leave the field because they cannot afford care for their own children, providers may have fewer staff to serve families in their communities.
Cost also matters beyond childcare centers. The report cites North Carolina labor-force participation at around 58%, compared with around 61% nationally, and says business leaders view a lack of affordable childcare as one factor affecting workers’ ability to participate. That comparison is presented as context, not proof that childcare costs alone explain the gap.
For childcare workers, the arithmetic can be difficult. An Appalachian State University study cited in the report put average annual earnings in the field at $30,600 and the median monthly childcare cost at $900. The report says one child’s care would take about a third of a worker’s gross income at that average salary. Actual costs and pay vary, and workers earning less may face a greater burden.
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Local Support and a State Model
North Carolina programs are using different approaches. At Kate’s Korner, the employer absorbs most of the expense. Watauga County’s pilot instead drew on local donor and business funding to provide assistance to workers. Chamber president David Jackson said the program could give staff another reason to stay with a center, while easing the burden of paying for care.
Kentucky provides a state-level comparison. Its Free Child Care for Child Care Workers Program, launched in 2022, subsidizes care for employees working at least 20 hours a week at a center, regardless of household income. Kate Shanks of the Kentucky Chamber of Commerce said more than 5,300 families working in childcare benefited over the past year, and that lawmakers made the program permanent earlier this year. The report says at least nine other states have enacted similar policies, according to the Kentucky Chamber.
Goodwin said she supports a similar statewide program in North Carolina and suggested it could include teachers. The report does not say that North Carolina has adopted or formally proposed such a policy.
““As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make.””
— Kate Goodwin, owner of Kate’s Korner
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Scope of Statewide Support
The supplied report does not give a publication date, the amount of assistance each Watauga family received beyond the average, or whether the county initiative will continue or expand. It also does not identify a North Carolina state proposal or funding plan for a statewide childcare-worker benefit. The 61% survey result records programs offering benefits, but does not establish how broadly workers can access them or whether those benefits meet their care costs.
The cited wage and childcare-cost figures are averages or medians, not measures of every worker’s pay or every family’s expenses. The report does not quantify how much the benefit programs changed staff retention, enrollment or the number of available childcare spaces.
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Whether Local Aid Expands
The report identifies no scheduled decision or next milestone for a statewide North Carolina subsidy. The immediate question is whether local efforts such as Watauga County’s assistance initiative will continue and whether other communities or employers will adopt similar benefits. Any broader program would require decisions about who qualifies, how care is funded and whether support covers workers across the state.
For now, centers and local partners are using different funding approaches while the workforce faces recruitment and retention challenges. The report’s account of Kentucky offers one example of a state policy, but it does not establish that North Carolina lawmakers will follow the same approach.
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Key Questions
What childcare support are North Carolina workers receiving?
Some centers provide childcare benefits directly. Kate’s Korner covers most of the cost for employees who cannot use vouchers, and Watauga County’s local initiative provided assistance to 18 employees with 22 children.
How much funding did the Watauga County initiative receive?
The Boone Area Chamber of Commerce Foundation launched the initiative with $40,000 from local donors and businesses. Assistance averaged $684 per child, according to the report.
Does North Carolina have a statewide childcare subsidy for childcare workers?
The supplied report does not describe a statewide North Carolina subsidy. Goodwin said she supports creating one, but the report does not identify an adopted or formally proposed state program.
How does Kentucky’s program work?
Kentucky’s program, launched in 2022, subsidizes childcare for workers employed at least 20 hours a week at a center, regardless of household income. The Kentucky Chamber said more than 5,300 families working in childcare benefited over the past year.
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