Providing continuous childcare to parents from the birth of their child to the start of compulsory primary education – to close the so-called childcare policy gap – could bring a return on investment (ROI) of more than US$3.7 for every dollar invested, according to a new brief from the International Labour Organization.
Moreover, this investment has the potential to yield broader benefits, including reduced gender inequalities, increased job opportunities, improved health, and a path towards social justice, said the brief, The benefits of investing in transformative childcare policy packages towards gender equality and social justice .
CLOSING THE CHILDCARE POLICY GAP: A GLOBAL IMPACT
The study, which encompasses 82 countries, indicates that a one-dollar investment in closing the childcare policy gap could lead to an average increase of $3.76 in the global Gross Domestic Product (GDP) by 2035. It’s not just economic growth; this investment could also reduce the global gender pay gap from 20.1% in 2019 to just 8% in 2035. Additionally, it could boost women’s employment rates globally to an average of 56.5% by 2035, up from 46.2% in 2019.
CREATING JOBS AND BOOSTING GENDER EQUALITY
The impact of this investment extends to job creation, potentially generating around 300 million jobs by 2035. This includes 96 million direct jobs in childcare, 1.36 million direct jobs in long-term care, and 67 million indirect jobs in non-care sectors, as highlighted in the brief.
THE FINANCIAL COMMITMENT
To establish universal, high-quality childcare services staffed by trained and valued early childhood education professionals, an additional spending equivalent to 1.5% of global GDP would be required. This is in addition to the current public spending of 0.3% of global GDP. Importantly, this figure does not take into account the additional tax revenue that would result from the increase in formal employment.
THE CHILDCARE POLICY GAP AND ITS IMPACT
The childcare policy gap refers to the period between the end of statutory childcare-related leave and the commencement of free, universal early childhood care and education or primary education. Globally, this gap averages around 4.2 years, affecting approximately 3.5 billion people, or 90% of actual and potential parents.
EMPOWERING WOMEN AND CLOSING THE GAP
The childcare policy gap serves as a significant structural barrier for both women and men, with women bearing the greater burden. Thus, closing this gap has immense potential for achieving gender equality, particularly in employment and earnings. It is estimated that 84% of the total net employment created by closing the policy gap would benefit women, as they transition from unpaid care work to paid and formal employment.
POLICY RESPONSES AND ILO INITIATIVES
The brief offers a series of policy responses that align with international labour standards to support the transformation of the care economy. These responses are outlined in the new online ILO Global Care Policy Portal, which provides insights into the status of national care policies. They include national social dialogues, capacity building, promoting the benefits of care policy investments, and strengthening the capacity of governments, employers, and workers’ organizations.
Investing in childcare is not just an investment in children; it’s an investment in a more equitable, inclusive, and prosperous future for all.
