The Economic Impact of the Early Care and Education Industry in Los Angeles County

The Insight Center’s The Economic Impact of the Early Care and Education Industry in Los Angeles County reports that the early care and education (ECE) industry, which is comprised of child care and child development programs and licensed home providers for children under age 12, preschool programs, after school, latchkey, and other out of school time programs, is a vital element in strengthening and sustaining the county’s economy. The study found that the early childhood industry in Los Angeles County generates $1.9 billion dollars annually, and directly supports over 65,000 full-time jobs. Between 2006 and 2016 it will be responsible for generating the sixth highest number of new jobs in the county. Additionally, the industry was found to play a vital role in the effectiveness of other industries by creating opportunities for parents to be productive participants in the workforce, helping young children develop skills to contribute to the economy as adults, and preventing occurrences of incarceration, welfare dependency, and other trends that may have a negative impact on the economy. To ensure that early care and education remains a vital and relevant part of the economy, Insight recommends that:

• the public sector increase investments to expand and improve early care and education options for low-income families;
• the business sector establish and promote early care and education benefits such as child care subsidies and supports; and
• the early care and education community encourage families to advocate for early childhood investment and increased quality and service availability.

  For further information, visit http://ceo.lacounty.gov/ccp/pdf/LA Economic Impact Report-Jan08.pdf.