Pressure at the Intersection of Early Childhood Education and Workforce Development

Top 10 Trends to Watch in Ramsey County’s Workforce Landscape: Part Six

As we progress through a series of discussion points from the RealTime Talent report titled Top 10 Trends to Watch in Ramsey County’s Workforce Landscape, nothing illustrates the factors threatening economic well being like childcare. Specifically, early childhood care and education are at the forefront of challenges in the county’s workforce landscape. This critical sector faces a crisis, with severe childcare shortages threatening to exacerbate workforce disparities. To navigate this turbulence, close attention must be paid to the current status, and specific initiatives must be developed to turn a limiting factor into a driving strength.

Access to affordable, safe, and developmentally appropriate early childhood education and care is essential on multiple fronts. While the impact of quality care has long been linked to child development and growth, it is also crucial for a community’s overall economic development by ensuring a strong, robust workforce for local employers.

“Without solving this issue, our workforce challenges in Ramsey County will continue to be exacerbated," said Erin Olson, Senior Director of Strategic Research with RealTime Talent.

Talent supply problems

Top 10 Trends to Watch in Ramsey County’s Workforce Landscape indicates more than 3,700 people work in early education and care businesses in Ramsey County, while an even higher number support childcare needs as family, friend, and neighbor caregivers. 

Even before the pandemic, the demand for childcare services exceeded the available supply of provider institutions and talent. In fact, since 2016, the county has lost 1,500 licensed spots, constituting 30 percent of total capacity. During the pandemic, more than two-thirds of Ramsey County programs needed to lay off staff. That trend hasn't fully recovered, illustrated by the fact that as of September 2021, almost 60 percent of Ramsey County childcare centers have experienced a decline of at least 25 percent in annual attendance.

As parents work today, many cannot find quality childcare openings, creating a labor shortage that hurts Minnesota businesses and the entire local, regional and state economy. This discrepancy highlights the need for targeted interventions to attract and retain talent in this critical sector.

Reasons for shortages

Numerous explanations define the childcare talent crisis. One of the core challenges in early childhood education is low compensation. The average annual wage for childcare workers in Ramsey County is $39,600, which falls below the living wage for a single person in the area. Historically, high turnover rates further exacerbate the problem. For example, an estimated 14% of all childcare workers in Ramsey County needed to be replaced in 2021 due to turnover, retirements and other job changes.

The childcare sector is also plagued by inconsistencies that deter consistent workforce retention. Entry-level childcare positions tend to be filled by individuals with higher educational backgrounds than required. While most childcare workers in Ramsey County have some college experience, 80% of childcare job postings do not require a postsecondary education but look for relevant certifications, which can often be obtained through the employer. Additionally, advancement in early childhood education is limited with no clearly defined career growth trajectory from entry-level childcare worker roles.

Action plan

Increased investment in new childcare centers and workers is essential for economic growth. Olson notes, "Strategic solutions and proactive measures are crucial to navigating these challenges and securing a stable future for early childhood education in Ramsey County."

In 2022, Ramsey County, in partnership with Think Small, launched the Ramsey County Early Childhood Academy to attract and retain childcare programs through incentives and support services. The three-year, $750,000 initiative is a part of the Ramsey County Investment and Support Efforts program, funded through the American Rescue Plan Act. Think Small estimates that over three years, the Academy will increase childcare enrollment capacity by 420 and create 231 new jobs while saving 972 existing enrollment slots and 90 childcare jobs in the county.

The Academy will:

• provide bonuses of $1,000 per year and at least 16 hours of free professional development training to retain the workforce and help existing participants keep their doors open to area families.
• recruit childcare educators in the neighborhoods most affected by the childcare crisis and provide interested residents with at least 16 hours of free training of their choosing and 120 hours of free training required to achieve a Child Development Associate credential.
• offer a Build Your Own program that:
• helps participants through the child care start-up process.
• provides advice about how to locate or retrofit space.
• matches start-up childcare providers with experienced mentors who currently operate high-quality programs.
• provides compensation to new childcare providers to apply their learned skills while getting feedback in the early stages.
• delivers training in health, safety and kindergarten-readiness best practices associated with state licensure and a Parent Aware Rating.

Additional steps that can provide tangible results include redirecting talent from industries affected by the COVID-19 pandemic, such as hospitality and tourism, toward entry-level childcare positions to address the shortage of early education providers. Flexible scheduling and attractive benefits will be key to recruiting talent from these sectors.

Intertwined dependence

Addressing the workforce shortages in childcare and early education is crucial to the future success of Ramsey County businesses and residents. “Critical actions must be taken to continue important initiatives that address both workforce shortages and the affordability of childcare," said Olson.

The Top 10 Trends to Watch in Ramsey County’s Workforce Landscape from RealTime Talent is a compass guiding Ramsey County through the complexities of a transforming workforce. The trends identified pave the way for a resilient, innovative and inclusive future. Each trend will be explored in-depth throughout 2024, charting the course for Ramsey County's workforce in the coming years.