A lack of child care in Jackson County cost local employers $12 million due to employee absences and turnover each year, according to a study.
The county was one of three rural counties studied by the Indiana University Public Policy Institute and Early Learning Indiana.
“Lost Opportunities: The Impact of Inadequate Child Care on Indiana’s Workforce and Economy” looked at the economic repercussions on the state and businesses resulting from child care related work disruptions such as absenteeism and employee turnover.
Absenteeism cost employers $11.3 million and turnover cost $734,723, the study showed.
Costs were formulated by looking at employees who could not come to work because of child care issues and wages paid by companies for salaried workers, overtime and temporary workers. It also took into account the loss of productivity.
The study estimated workers miss about 13 days of work each year and about 2.8 percent of workers leave because of child care issues.
The study also estimates the loss in economic activity and suggests Jackson County lost $7.8 million. That accounted for a loss of $812,260 in tax revenue here.
The study used U.S. Census data and estimated costs throughout the state.
Amy Mazet, program director of the Southeastern Indiana Economic Opportunity Corporation’s childcare resource and referral office, said Jackson County has 43 regulated childcare providers.
Those providers range from basic health and safety care centers to ones with planned curriculum such as preschools. The providers show 223 vacancies as of Wednesday.
The office provides resources and takes referrals for childcare in 14 counties in southeastern Indiana.
Mazet said there is a need for childcare outside regular working hours.
“There’s a need for second and third shift care,” she said, adding only seven providers offer hours outside common working schedules. “None of the seven actually offer a full second or third shift of care.”
At the state level, the report estimates Indiana lost nearly $1.1 billion in economic activity due to child care related absenteeism and turnover. Absenteeism cost employers $580 million and $519 million for turnover.
The losses also impact the government as $118.8 million in tax revenue was lost across Indiana in the same period, according to the report.
Estimates were calculated for the state in three urban and rural areas. Montgomery and Parke were the other two rural counties while Elkhart, Marion and Vanderburgh were the urban counties studied.
The study included recommendations made by the Early Care and Education advisory board and included tax credits for businesses that support early childhood care and education, social impact bonds, shared service alliances between providers and dedicated sources from local government.
The report compared Indiana to Louisiana and Maryland.
Indiana was the most populous state between the three. Employers in Maryland lost $2.4 billion, while Louisiana employers lost $816 million. Indiana has a population of 6.7 million, while Maryland has 6 million and Louisiana has 4.7 million.